LG Display said profit more than halved in the fourth quarter as low demand for TVs continued to compress screen prices, outweighing a sales rebound in displays for Apple's iPhones.
The company's revenues in the fourth quarter of 2013 decreased
by 19% in the fourth quarter of 2012 and increased by 8% in the third quarter of 2013.
Its operating profit in the fourth quarter of 2013 was KRW 257
billion, a year-on-year decrease of 56% from the operating
gain of KRW 587 billion and a quarter-on-quarter decrease of
34% from the operating gain of KRW 389 billion.
Net income in the fourth quarter of 2013 was KRW 71 billion
compared with net income of KRW 320 billion in the fourth
quarter of 2012, and net income of KRW 239 billion in the
third quarter of 2013.
The company shipped a total of 9.58 million square meters of
net display area in the fourth quarter of 2013, an increase of
9% from the previous quarter.
LCD TV panels accounted for 37% of revenues in the fourth
quarter of 2013, while monitors made up 17%, mobile
applications 15%, notebook PCs 11% and tablets 20%.
For the complete 2013, LG Display posted an operating profit
of KRW1,163 billion in 2013, up by 28% compared to the
previous year, achieving an annual operating profit of more
than KRW 1 trillion for the first time in three years.
"Despite market uncertainties due to the challenging economic
environment, our annual operating profit in 2013 increased
compared to the previous year. This was mainly achieved by
focusing on technology differentiation, such as IPS and FPR
3D, and strengthening our cost differentiation," said Dr. Sang
Beom Han, CEO of LG Display. "We will continue to achieve
future competitiveness by securing an advantageous position in
new markets, including commercial and automobile displays,
while actively pursuing Ultra HD TV and OLED TV businesses."
"In 2014, industry panel demand on an area basis is expected
to grow by a mid-single digit percentage from the previous
year driven by continuous larger-size panel demand, while
panel supply is also expected to grow by a mid-single digit
percentage. As a result, overall supply and demand situation
is expected to be similar to last year." said Don Kim, CFO of
LG Display. "Looking ahead, we expect profits in the first
quarter of 2014 to decline quarter-on-quarter due to
traditional seasonal decline in panel shipments and price, but
we will do our utmost to overcome the challenges by continuous
product and cost differentiation strategies."