SEOUL, Korea (Jul. 27, 2016) – LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2016.
◆ Revenues in the second quarter of 2016 decreased by 2% to KRW 5,855 billion from KRW 5,989 billion in the first quarter of 2016 and decreased by 13% from KRW 6,708 billion in the second quarter of 2015.
◆ Operating profit in the second quarter of 2016 recorded KRW 44 billion, a quarter-on-quarter increase of 12% from the operating profit of KRW 40 billion in the first quarter of 2016, and a year-on-year decrease of 91% from the operating profit of KRW 488 billion in the second quarter of 2015.
◆ EBITDA in the second quarter of 2016 was KRW 833 billion, compared with EBITDA of KRW 853 billion in the first quarter of 2016 and with EBITDA of KRW 1,347 billion in the second quarter of 2015.
◆ Net loss in the second quarter of 2016 amounted to KRW 84 billion, compared with the net income of KRW 1 billion in the first quarter of 2016, and a year-on-year decrease from the net income of KRW 363 billion in the second quarter of 2015.
LG Display announced its seventeenth straight quarterly operating profit at KRW 44 billion, which resulted from a thorough and profit-focused management based on differentiated technologies in response to difficult market conditions caused by continuing falls in panel prices and the aggressive expansion of LCD production capacity from the Chinese panel makers.
To deal with the difficult market conditions, LG Display increased profitability by expanding the production share devoted to large-size panels of 60-inches and above as well as premium TV panels embedded with HDR(High Dynamic Range) technology, while continuously leading the Ultra HD TV market for 40-inches and above sized panels based on its differentiated M+ technology. The company also maximized production efficiency over all its business areas by improving the manufacturing process and producing profit-focused products.
Panels for TVs accounted for 39% of the revenue in the second quarter of 2016, tablets and notebook PCs for 18%, mobile devices for 27%, and desktop monitors for 16%.
With 83% in the liability-to-equity ratio, 145% in the current ratio, and 19.6% in the net debt-to-equity ratio as of March 31, 2016, the financial structure of the company remains stable.
LG Display will continue to make efforts to improve profitability by focusing on premium products including large-size Ultra HD TV displays based on its M+ technology and IPS In-Touch displays in the second half of the year, while driving expansion of the OLED market and its customer base.
As for large-size OLED TV panel, the company will increase cost competitiveness through further stabilizing production and improving the manufacturing process of Ultra HD products, while continuing promotion with customers to strengthen the premium positioning of OLED TV. It will also establish a competitive edge through timely investments in cutting-edge technologies for the future including flexible OLED displays.
Mr. Don Kim, CFO of LG Display, said “Display area shipments in the third quarter are expected to increase by a mid-single digit percentage compared to the second quarter due to seasonal factors and the growing trends towards large-size panels. Overall profitability in the second half of the year is expected to further improve due to stabilized panel prices.” He also added, “LG Display will put its best efforts to create differentiated value in terms of profitability, while preparing for future growth even under difficult market conditions.”
