SEOUL, Korea (Jan. 23, 2018) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending December 31, 2017.
- Revenues in the fourth quarter of 2017 increased by 2% to KRW 7,126 billion from KRW 6,973 billion in the third quarter of 2017 and decreased by 10% from KRW 7,936 billion in the fourth quarter of 2016.
- Operating profit in the fourth quarter of 2017 recorded KRW 45 billion, a quarter-on-quarter decrease of 92% from the operating profit of KRW 586 billion in the third quarter of 2017 and a year-on-year decrease of 95% from the operating profit of KRW 904 billion in the fourth quarter of 2016.
- EBITDA in the fourth quarter of 2017 was KRW 930 billion, compared with EBITDA of KRW 1,420 billion in the third quarter of 2017 and with EBITDA of KRW 1,623 billion in the fourth quarter of 2016.
- Net income in the fourth quarter of 2017 was KRW 44 billion, a quarter-on-quarter decrease of 91% from the net income of KRW 477 billion in the third quarter of 2017 and a year-on-year decrease of 95% from the net income of KRW 825 billion in the fourth quarter of 2016.
LG Display recorded its 23rd straight quarterly operating profit while surpassing KRW 1 trillion in annual operating profit for the fifth consecutive year. This achievement resulted from a differentiated product mix strategy and the company’s industry-leading technologies amid a continued downward trend in panel prices and an unfavorable foreign exchange rate.
Despite intensified global competition in the industry and the continued decline in panel prices that started in the second half of 2017, LG Display achieved a record-high annual operating profit of KRW 2.5 trillion by expanding the portion of differentiated products such as large-size UHD TV panels as well as high-resolution and high-end IT panels.
In the meantime, LG Display solidified its OLED business by increasing its annual OLED TV panel shipments to 1.7 million units by achieving stable productivity as well as expanding its customer base in the large-size OLED business. The company also started operation at its E5 production line, which produces small and mid-size OLED panels.
LG Display registered KRW 7,126 billion in revenues in the fourth quarter of 2017, a quarter-on-quarter increase of 2% thanks to increased shipments of large-size LCD panels and OLED panels for TVs backed by seasonality. The operating profit of LG Display in the fourth quarter decreased by 95% year-on-year and by 92% quarter-on-quarter due to the continued decline in prices and an unfavorable foreign exchange rate, as well as pre-emptive expenses in marketing and R&D for OLED business expansion in 2018 and some one-off expenses.
Panels for TVs accounted for 40% of revenues in the fourth quarter of 2017, mobile devices for 28%, tablets and notebook PCs for 18%, and desktop monitors for 14%.
With 95% in its liability-to-equity ratio, 117% in its current ratio, and 15% in its net debt-to-equity ratio as of December 31, 2017, the financial structure of the company remains stable.
LG Display’s Board of Directors decided on a dividend of KRW 500 per common share for the fourth year in a row in order to boost shareholder value. The decision is subject to the approval of the forthcoming Annual General Meeting of Shareholders in March 2018.
“Panel area shipments in the first quarter of 2018 are expected to decrease by a high-single digit percentage due to reduced panel demand stemming from low seasonality,” said Don Kim, CFO of LG Display. “The downward trend in panel prices is anticipated to continue, but prices are expected to stabilize at the end of the first quarter.” He added, “In 2018, we will speed up our shift to an OLED-focused business structure in order to strategically prepare for the future by investing around KRW 9 trillion.”
About LG Display
LG Display Co., Ltd. [NYSE: LPL, KRX: 034220] is the world’s leading innovator of display technologies, including thin-film transistor liquid crystal (TFT-LCD) and OLED displays, as well as the global pioneer in OLED lightning. The company manufactures display panels in a broad range of sizes and specifications primarily for use in TVs, notebook computers, desktop monitors, and various other applications, including tablets and mobile devices. It also produces a wide range of OLED light panels for the automotive and interior design sectors. LG Display currently operates manufacturing facilities in Korea and China, and back-end assembly facilities in Korea, China, Poland, and Vietnam. The company has approximately 49,000 employees operating worldwide. For more news and information about display products, please visit www.lgdisplay.com.
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