[E-Daily Reporter Choi Oh-hyun ] LG Display returned to profitability in just one quarter, driven by expanded shipments of large-sized and mobile organic light-emitting diode (OLED) panels. However, operating profit fell 42% year-over-year due to cost pressures stemming from a weaker exchange rate and rising semiconductor prices. The company plans to strengthen profitability by leveraging its next-generation OLED patterning technology, “FLiPP,” and cost innovations.
LG Display announced on the 22nd that its preliminary consolidated results for the third quarter of this year showed revenue of 6.277 trillion won and operating profit of 250.6 billion won. Revenue decreased by 10% year-over-year but increased by 12% quarter-over-quarter. Operating profit returned to the black after a 107.7 billion won loss in the previous quarter, though it was down 42% compared to the same period last year. Net income turned positive at 755.6 billion won.
Increased shipments of large-sized and mobile OLED products during the seasonal peak drove revenue growth. However, revenue declined year-over-year as shipments of mid-sized LCD products decreased in line with the company’s strategy to manage its product portfolio with a focus on profitability.
Operating profit returned to the black in just one quarter. However, it decreased by 42% compared to the 431 billion won recorded in the same period last year. Analysts note that while operating profit improved compared to the previous quarter—driven by an expanded share of high-value-added OLED products and operational efficiencies—the company was unable to avoid adverse factors such as the weakening won-dollar exchange rate and “chipflation.”
By product category, the mobile segment’s share rose by 10 percentage points (p) compared to the previous quarter to 42%, marking the largest increase. The IT segment’s share fell by 7 p due to a decline in shipments, accounting for 29%. The company explained that the TV and automotive segments showed relatively little change compared to the previous quarter.
The company is accelerating the restructuring of its business to focus on OLED. OLED accounted for 67% of total third-quarter revenue, marking a record high for any quarter. This represents a 2 percentage points increase year-over-year and a 10 percentage points increase quarter-over-quarter.
Shipments of large-sized OLED panels also expanded. LG Display announced that third-quarter shipments of large-sized OLED panels increased by 4% compared to the previous quarter. The company forecasts that shipments this year will reach the high 7 million range, an increase of approximately 20% year-over-year. It plans to gradually resume operations at some production facilities in Paju—which are currently suspended—taking into account TV and monitor demand as well as production efficiency.
LG Display plans to focus on securing profitability and competitiveness by prioritizing the development of new technologies and reducing costs. However, while highlighting FLiPP—a next-generation OLED patterning technology—the company stated that the specific investment scale and mass production timeline have not yet been finalized.
FLiPP is a technology that precisely forms light-emitting elements without a fine metal mask (FMM) during the OLED manufacturing process, thereby increasing screen brightness and production efficiency. In particular, it is drawing attention as a differentiating technology capable of countering competitors’ investments in 8.6-generation OLEDs, as it enables shorter process times and reduced material costs by utilizing existing production facilities.
The company projected that panel shipment area in the fourth quarter would increase by approximately 10% compared to the previous quarter. It also anticipated a low single-digit increase in the selling price per unit area. In particular, it mentioned the potential for increased demand following the launch of Apple’s foldable smartphone. An LG Display spokesperson stated, “Market expectations are generally high at present,” adding, “We believe there is a possibility that the foldable smartphone market could grow larger than initially anticipated.”
However, the company predicted that the extent of improvement in the next quarter would be limited due to the recent slowdown in device demand and rising semiconductor prices. Furthermore, profitability pressures stemming from rising semiconductor prices are expected to pose a burden. The company stated that even if smartphone panel shipments increase, profitability improvements may be limited due to cost pressures, and announced it would focus on cost innovation and expanding high-value-added products.
LG Display projected that its total capital expenditure (CAPEX) for this year would be in the low 2 trillion won range. Kim Seong-hyun, Executive Vice President and Chief Financial Officer (CFO) of LG Display, stated, “We will execute investments in new OLED technologies as previously announced to the market to ensure timely mass production.”
