LG Display Reports First Quarter 2017 Results
SEOUL, Korea (Apr. 26, 2017) – LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2017.
- Revenues in the first quarter of 2017 increased by 18% to KRW 7,062 billion from KRW 5,989 billion in the first quarter of 2016 and decreased by 11% from KRW 7,936 billion in the fourth quarter of 2016.
- Operating profit in the first quarter of 2017 recorded KRW 1,027 billion, a quarter-on-quarter increase of 14% from the operating profit of KRW 904 billion in the fourth quarter of 2016, and a year-on-year increase of 2,498% from the operating profit of KRW 40 billion in the first quarter of 2016.
- EBITDA in the first quarter of 2017 was KRW 1,743 billion, compared with EBITDA of KRW 1,624 billion in the fourth quarter of 2016 and with EBITDA of KRW 853 billion in the first quarter of 2016.
- Net income in the first quarter of 2017 amounted to KRW 679 billion, compared with the net income of KRW 825 billion in the fourth quarter of 2016, and a year-on-year increase from the net income of KRW 1 billion in the first quarter of 2016.
LG Display recorded its twentieth straight quarterly operating profit at KRW 1,027 billion, a record-high quarterly performance even under the off-season of the year regarded in the industry. This achievement is backed by the favorable market conditions including the continuously upward trend of large-size panel prices, and by the company’s product mix strategy of focusing on differentiated and high value-added products such as large-size panels for Ultra HD TVs and high-end IT products based on its IPS technology.
The company also registered KRW 7,062 billion in revenues in the first quarter of 2017 increased year-on-year by 18% from KRW 5,989 billion, despite the reduced days of operation during the quarter and the decreased share of mid- and small-size panels caused by low seasonality.
Panels for TVs accounted for 43% of the revenue in the first quarter of 2017, mobile devices for 26%, tablets and notebook PCs for 16%, and desktop monitors for 15%.
With 81% in the liability-to-equity ratio, 140% in the current ratio, and 17% in the net debt-to-equity ratio as of March 31, 2017, the financial structure of the company remains stable.
“Panel shipments by area in the second quarter of 2017 are expected to reach a similar level as the first quarter, while TV panel shipments are anticipated to decrease or stay flat due to continued trends toward large-size panels,” said Don Kim, CFO of LG Display. “Panel prices are expected to remain stable despite the possible ups and downs in prices depending on sizes and products.”
He added, “With the growing market expectation around new OLED products such as Crystal Sound OLED(CSO), Wallpaper OLED TV panels, and POLED(plastic-based OLED), LG Display will go forward with its plans to increase capacity in large-size OLED panels and to start the mass-production of POLED in the new 6th generation production line in Gumi as scheduled. As such, we will make constant efforts to stand out and lead the market as the world’s no. 1 display maker.”