LG Display, a leading innovator of TFT-LCD technology, reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2012.
◆ Sales in the second quarter of 2012 increased by 12% to KRW 6,910 billion from KRW 6,184 billion in the first quarter of 2012, and increased by 14% compared with KRW 6,047 billion in the second quarter of 2011.
◆ Operating loss in the second quarter of 2012 was KRW 26 billion. This compares with a loss of KRW 178 billion in the first quarter of 2012 and operating loss of KRW 48 billion in the second quarter of 2011.
◆ EBITDA in the second quarter of 2012 was KRW 1,039 billion, an increase of 28% from KRW 812 billion in the first quarter of 2012 and a year-on-year increase of 23% from KRW 845 billion in the second quarter of 2011.
◆ Net loss was KRW 112 billion in the second quarter of 2012 compared with net loss of KRW 129 billion in the first quarter of 2012 and net income of KRW 21 billion in the second quarter of 2011.
LG Display announced record high quarterly sales as the portion of premium product sales such as AH-IPS for smart devices and FPR 3D increased. While this resulted in significant profitability improvement, the company recorded an operating loss due to recognition of a provision related to civil litigation in the U.S.
Additionally, the Board of Directors of LG Display decided to invest KRW 1.20 trillion to convert part of the company’s 6th generation line into an LTPS (Low Temperature Poly-Silicon) line in order to meet steeply increasing demand for smart device panels.
“In the second quarter, LG Display demonstrated fast earnings improvement as a result of its highly competitive technology base. Further, the company decided to invest in converting part of its 6th generation line into LTPS in anticipation of rapid growth in the smart device panel market requiring differentiated technology, ”said Dr. Sang Beom Han, CEO of LG Display.“We will also continue to secure a competitive edge through products such as large-sized OLED TV panels and this approach will serve as the basis for continuous improvements in profitability as well as further improved results in the third quarter.”
The company shipped a total of 8.55 million square meters of net display area in the first quarter of 2012, an increase of 6% quarter-on-quarter with an ASP per square meter of USD 701.
TFT-LCD panels for TVs, monitors, notebook PCs, smartbooks and mobile applications accounted for 49%, 17%, 14%, 10% and 10%, respectively, on a revenue basis in the second quarter.
With KRW 2,655 billion of cash and cash equivalents and 21% of net debt to equity ratio as of June 30, 2012, the financial structure of the company remains stable.
