LG Display Reports Third Quarter 2022 Results

LG Display reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending Sept. 30, 2022.

Revenues in the third quarter of 2022 increased by 21% to KRW 6,771 billion ($4.723 billion) from KRW 5,607 billion in the second quarter of 2022 and decreased by 6% from KRW 7,223 billion in the third quarter of 2021.

Operating loss in the third quarter of 2022 recorded KRW 759 billion ($530 million). This compares with the operating loss of KRW 488 billion in the second quarter of 2022 and with the operating profit of KRW 529 billion in the third quarter of 2021.

EBITDA in the third quarter of 2022 was KRW 391 billion ($273 million), compared with EBITDA of KRW 662 billion in the second quarter of 2022 and with EBITDA of KRW 1,696 billion in the third quarter of 2021

Net loss in the third quarter of 2022 was KRW 774 billion ($540 million), compared with the net loss of KRW 382 billion in the second quarter of 2022 and with the net income of KRW 464 billion in the third quarter of 2021.

LG Display experienced lower panel demand than expected in the third quarter as set makers tightly adjusted and strengthened their inventory policies due to a worsening macroeconomic environment. The unprecedented decline in set and panel demand, coupled with all-time-low LCD panel prices during the second half of the year, particularly affected the company’s well noted mid-sized panel and premium TV panel businesses, which significantly impacted the company’s overall performance.

Panels for TVs accounted for 25% of the revenues in the first quarter, while panels for IT devices including monitors, laptops, and tablets accounted for 45%, and those for mobile devices and the others accounted for 30%.

In response to high macroeconomic uncertainty and prolonged sluggish demand across the industry, LG Display will step up its efforts to accelerate the reorganization of its business structure, focusing on high-end LCD products and OLED while enforcing a sound financial structure.

In its large-sized business, LG Display will continue to push for qualitative growth while securing profitability by improving its product portfolio and management efficiency. In addition, the company will also expand its differentiated products, such as gaming OLED displays and ultra-large OLED panels of 65 inches and higher, while further strengthening its cost competitiveness.

In consideration of recent market conditions and business competitiveness within the sector, the company will advance its plan to exit domestic production of LCD TV panels while also gradually reducing production in China.

For its mid-sized business, LG Display will reduce business volatility by strengthening differentiated competitiveness for its high-end LCD products. In addition, the company plans to preoccupy the mid-sized OLED market, particularly the tablet and WOLED-based monitor sectors, while strengthening its technological leadership in the market.

For the small-sized OLED market, LG Display has begun supplying products for new smartphone models and will further strengthen its business capabilities centered around high-end products. In addition, the company will concentrate on further expanding its position in the ever-growing smartwatch and automotive display markets through differentiated product lineups and solutions.

“We will make full-fledged efforts to improve our financial structure as quickly as possible by minimizing investments and operating expenses while strengthening inventory management and implementing bold, flexible strategies in conjunction with the current business outlook,” Sung-hyun Kim, CFO and SVP at LG Display.