LG Display posted second-quarter profit that missed analyst estimates on slower consumer demand for screens used in personal computers and televisions. The key supplier to Apple is now seeking to broaden its smartphone customer base.
The South Korean company posted a forecast-beating 53 percent rise in quarterly operating profit, as stable prices of large-sized TV screens helped counter slower growth in mobile display shipments to Apple.
LG Display is expected to supply super-thin and full high-definition screens for the upgraded version of LG Electronics' flagship G2 smartphone due out in early August.
LG Display made 366 billion won ($326 million) in operating profit for its April-June second quarter. But sales slipped 5 percent from a year earlier to 6.6 trillion won. LG Display said sales fell because weaker demand for screens used in mobile devices and laptops more than offset increases in total panel shipments.
LG Display said it expects overall panel prices to weaken in the current quarter before they start to recover later in the period.
"With differentiated specialty products based on IPS technology, LG Display was able to lead the market and to achieve growth in operating profit overcoming seasonal factors," said Dr. Sang Beom Han, CEO of LG Display. "While placing continual importance on maximizing customer value, LG Display will make full-fledged efforts to secure future competitiveness as an industry leader."
"Total display area shipment in the third quarter of 2013 is expected to increase by a low to mid single digit percent growth rate compared to the second quarter of 2013, with the seasonal demand growth in the third quarter, and panel prices anticipated to stabilize from mid-quarter after an expected short-term decrease in price," said James Jeong, CFO of LG Display. "LG Display will step up its constant efforts to strengthen its differentiated strategy by increasing per-unit values and expanding shipments."