LG Display Q3 operating profit 250.6 billion won, down 42% on year
In short
LG Display said on 22 October that its third-quarter operating profit was 250.6 billion won, down 42% from a year earlier, on revenue of 6.277 trillion won, down 10%. The company returned to an operating profit after a loss in the previous quarter. It pointed to the lower won-dollar exchange rate and chip price increases ("chipflation") as pressures on earnings.
Read the full story 2 min read
LG Display said on 22 October that its consolidated third-quarter revenue was 6.277 trillion won and operating profit was 250.6 billion won. Compared with the same period a year earlier, revenue fell 10% and operating profit fell 42%. Chosun Ilbo, Newsis and Seoul Economic Daily carried the figures as breaking news in the early afternoon. [ 1 , 2 , 3 , 4 , 5 ]
Revenue rose 12% from the previous quarter, Newsis and Asia Economy reported, as large and mobile OLED products entered the seasonal peak and shipments grew. The year-on-year decline was attributed to lower shipments of mid-size LCD products under a profitability-focused product portfolio strategy. [ 5 , 8 ]
Operating profit was affected by the lower won-dollar exchange rate and chipflation, according to Newsis and Asia Economy. Asia Economy described chipflation as rising semiconductor component prices. Chosun Ilbo's summary said shipments of OLED panels rose after a major customer's new product launch, and that the exchange rate decline and higher memory chip and other component prices weighed on profitability, as analysed by the outlet. Operating profit improved from the previous quarter on a larger share of high-value OLED products and continued efficiency measures. Asia Economy said the previous quarter was a loss of 107.7 billion won. [ 2 , 5 , 8 ]
EBITDA was 1.2144 trillion won, a margin of 19%. Net profit was 755.6 billion won, which Newsis said reflected a large improvement in foreign currency translation gains because the period-end exchange rate fell. [ 5 , 8 ]
Asia Economy reported the company's plans: for small and mid-size products, strengthening its high-end mobile position; for IT panels, raising the share of high-value products and improving the cost structure; for large panels, keeping premium TV panel competitiveness; and for monitors, expanding the gaming line-up. It also reported that the company developed a patterning technology called FLIPP that removes the FMM metal plate used in RGB OLED production. The company said it can improve the aperture ratio by about 20 percentage points, raise brightness 1.6 times or extend lifespan 2.4 times, and cut power use by 13%. [ 8 ]
Chief Financial Officer Kim Seong-hyun (김성현) said the company focused on strengthening business competitiveness and operating efficiency while external uncertainty from exchange rates and component prices continued. He said it would keep pursuing technology competitiveness and cost innovation to build a stable earnings base. [ 8 ]
Why it matters
The results show OLED shipments rising from the previous quarter while profit stays well below the level of a year earlier. The company said exchange rates and component prices remain uncertain, and it plans to keep shifting toward OLED products.
Key facts
- LG Display reported third-quarter consolidated revenue of 6.277 trillion won and operating profit of 250.6 billion won, announced on 22 October. [ 4 , 5 , 8 ]
- Operating profit fell 42% and revenue fell 10% from the same period a year earlier. [ 1 , 2 , 3 , 4 , 5 , 8 , 9 ]
- Revenue rose 12% from the previous quarter as large and mobile OLED shipments entered the seasonal peak. [ 5 , 8 ]
- Net profit was 755.6 billion won, helped by foreign currency translation gains from a lower period-end exchange rate. [ 5 , 8 ]
- EBITDA was 1.2144 trillion won, a margin of 19%. [ 5 , 8 ]
- Asia Economy reported the previous quarter's operating result as a loss of 107.7 billion won. [ 8 ]
Confirmed by several sources
- LG Display's third-quarter operating profit was 250.6 billion won, down 42% from a year earlier, on revenue of 6.277 trillion won, down 10%. [ 2 , 4 , 5 , 8 ]
- Revenue rose 12% from the previous quarter on higher OLED shipments in the seasonal peak. [ 5 , 8 ]
- The year-on-year revenue decline was attributed to reduced shipments of mid-size LCD products under a profitability-focused portfolio strategy. [ 5 , 8 ]
- Operating profit was affected by the lower won-dollar exchange rate and chipflation, although it improved from the previous quarter. [ 5 , 8 ]
- Net profit was 755.6 billion won and EBITDA was 1.2144 trillion won with a 19% margin. [ 5 , 8 ]
- The company moved out of the previous quarter's loss. [ 2 , 8 ]
Still unclear
- How much a major customer's new product launch, referred to in a headline as an iPhone 18 effect, contributed to the OLED shipments. Chosun Ilbo's summary cites a major customer's new product launch as an analysis, and a Seoul Economic Daily headline mentions the iPhone 18, but neither available text gives figures or the company's own confirmation.
- The FLIPP patterning technology's claimed gains in aperture ratio, brightness, lifespan and power use. The figures come only from Asia Economy, which described them as the company's explanation.
What local media are saying
Timeline, local time
- Chosun Ilbo published a breaking report of the results. [ 1 , 2 ]
- Newsis published a breaking report of the results. [ 3 ]
- Seoul Economic Daily published the company's figures, saying LG Display announced them on the 22nd. [ 4 ]
- Newsis published a fuller report with revenue, profit, EBITDA and net profit. [ 5 ]
- Asia Economy reported the results and the company's plans; Seoul Economic Daily published a headline mentioning the iPhone 18. [ 8 , 9 ]