SEOUL, Korea (July 23, 2015) – LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2015.
◆ Revenue in the second quarter of 2015 decreased by 4% to KRW 6,708 billion from KRW 7,022 billion in the first quarter of 2015 and increased by 12% from KRW 5,979 billion in the second quarter of 2014.
◆ Operating profit in the second quarter of 2015 recorded KRW 488 billion, a quarter-on-quarter decrease of 34% from an operating profit of KRW 744 billion, and a year-on-year increase of 199% from the operating profit of KRW 163 billion in the second quarter of 2014.
◆ EBITDA in the second quarter of 2015 was KRW 1,347 billion, compared with EBITDA of KRW 1,595 billion in the first quarter of 2015 and with EBITDA of KRW 1,008 billion in the second quarter of 2014.
◆ Net income in the second quarter of 2015 amounted to KRW 363 billion, a quarter-on-quarter decrease of 24% from KRW 476 billion in the first quarter of 2015, and a year-on-year increase of 42% from KRW 256 billion in the second quarter of 2014.
LG Display announced today its thirteenth straight quarterly operating profit at KRW 488 billion and quarterly revenue of KRW 6,708 billion as a result of its differentiated product strategy despite a global decrease in consumption.
Despite customers adjusting their orders because of economic uncertainties, LG Display was able to report its thirteenth straight quarterly operating profit due to a continued trend towards large sized displays and an expanded customer base driven by Advanced In-Cell Touch (AIT) technology in the small to medium product segment. However, revenue declined by 4% and operating profit by 34% on a quarter-on-quarter basis because of a decline in panel prices that reflected weak demand in IT product segments.
TFT-LCD panels for TVs accounted for 40% of revenue in the second quarter of 2015, mobile device panels for 28%, tablet PCs and notebook PCs 16%, and monitors 16%.
LG Display will increase the production of premium products such as Ultra HD, Advanced In-Cell Touch (AIT), and large-sized display segments, while conducting full-scale efforts to expand the OLED market and customer base. Further, the company plans to improve its cost competitiveness by converting an existing LCD line to OLED line during the second half of the year and engaging in proactive marketing activities for large size OLED to expand the market and improve OLED recognition.
The company will also offer an increased range of the OLED product line-up based on different sizes and resolutions that satisfy customer needs, including investments in the next generation flexible OLED display, as it continues to lead the global display market.
With 78% in the liability-to-equity ratio, 144% in the current ratio, and 11% in the net debt-to-equity ratio as of June 30, 2015, the financial structure of the company remains stable.
