SEOUL, Oct. 22 (Korea Bizwire) — LG Display Co., a major display panel maker in South Korea, on Thursday said it swung to the black in the third quarter of the year on the back of robust demand for displays used in IT gadgets and increased shipments of large-size panels for TVs amid the pandemic-driven stay-at-home trend.
The company chalked up a net profit of 11.1 billion won (US$9.8 million) in the July-September period, shifting from a loss of 442.2 billion won a year earlier.
It also logged an operating profit of 164.4 billion won in the third quarter, swinging from an operating loss of 436.7 billion won a year ago. Sales rose 15.7 percent to 6.73 trillion won over the cited period.
This is the first time since the fourth quarter of 2018 that the company posted an operating profit.
LG Display attributed the turnaround to increased supply of displays for IT products and plastic OLED panels for mobile devices.
Full operation of its OLED plant in Guangzhou, China, and robust demand for large-size LCD panels also improved its profitability, according to the company.
LG Display said its display panel shipment area reached 8.3 million square meters in the third quarter, up 23.8 percent from the previous quarter, while the blended averages selling price of its displays reached $706 per square meter, up 7.9 percent from the previous three months.
Panels for IT products accounted for 43 percent of its revenue in the third quarter. TV panels accounted for 28 percent of its revenue, while mobile display products made up 29 percent of its sales.
LG Display said it plans to double the shipment of large-size OLED panels in the second half of the year compared to the first half as operation of its Guangzhou plant is in full swing.
The company aims to supply more than 7 million units of large-size OLED display panels next year.
In regards to rising demand for 48-inch OLED sheets, LG Display said it is preparing to manufacture such display panels from its factory in Paju, north of Seoul. Currently, 48-inch OLED panels are produced at the company’s Guangzhou plant.
To cope with rising demand for panels for IT products, driven by the work-from-home trend and remote learning, the company said it will convert more of its LCD TV panel production lines to IT display manufacturing lines.
LG Display said it expects the strong demand for IT panels to continue through the first half of 2021.
Shares in LG Display fell 0.32 percent to 15,750 won on the Seoul bourse, outperforming the broader KOSPI’s 0.67 percent drop. Its earnings results were released after the stock market closed.