LG Display Reports Low 4Q Profit As Panel Prices Weaken
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."
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."
