LG Display reported a decline in both revenue and operating profit for the third quarter of this year, impacted by a shrinking market and portfolio restructuring.
The company announced on October 22 that its consolidated revenue for the third quarter was 6.277 trillion won, with an operating profit of 250.6 billion won. This represents a 10% decrease in revenue and a 42% drop in operating profit compared to the same period last year.
The revenue decline was attributed to a reduction in shipments of medium-sized liquid crystal display (LCD) panels as part of a profitability-focused restructuring. Operating profit was also negatively affected by external factors such as a decrease in the won-dollar exchange rate and rising component prices, referred to as chip inflation.
However, shipments of mobile and large organic light-emitting diode (OLED) products increased as they entered a seasonal peak, showing a recovery compared to the previous quarter.
Thanks to an increased share of high-value OLED products and strong cost-cutting efforts, the company achieved a net profit of 755.6 billion won, while earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 1.2144 trillion won.
LG Display aims to drive a rebound in performance through an enhanced business structure centered on OLED technology. In the small and medium-sized segment, the company plans to strengthen supply for high-end mobile and premium IT products, while in the large segment, it intends to improve profitability by capturing the premium TV market and expanding its gaming monitor lineup.
The company is also accelerating the development of new technologies, such as the next-generation OLED patterning technology known as FLIPP, to secure its competitive edge.
Kim Sung-hyun, LG Display's Chief Financial Officer, stated, "Despite ongoing external uncertainties, we focused on business efficiency. We will enhance our ability to respond to external variables and solidify our profit-generating foundation based on differentiated technology and cost innovation."
* This article has been translated by AI.
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