LG Display, a South Korean manufacturer of flat screens, announced a return to profitability for the first time in seven quarters, driven by increased shipments of smartphone screens and TV panels during the holiday season. This marks a significant turnaround for the company, which has navigated a period of economic instability.
The Apple supplier reported an operating profit of 132 billion won ($98.67 million) for the October-December quarter, a stark contrast to the 876 billion won loss recorded in the same period a year earlier. This performance aligns with LG Display’s earlier estimate of 132 billion won for the quarter.
The company attributed this upswing to a rise in shipments of OLED displays for smartphones and heightened demand for larger screens, including those for TVs and notebooks, during the holiday season. However, analysts anticipate a potential dip in earnings in the current quarter due to traditionally lower seasonal demand. Despite this, the overall outlook for the year suggests an improvement from the previous year’s 2.5 trillion won operating loss, buoyed by a general uptick in demand for electronic products.
LG Display is also gearing up to supply screens for Apple’s upcoming Vision Pro headset and is expected to increase its supply of LCD panels for Samsung Electronics’ TVs this year. The company is optimistic about the shipments of both small and large OLED panels, as inventories deplete and demand rises.
In a strategic move to bolster financial stability, LG Display plans to reduce its 2024 investment to around 2 trillion won, down from 3.6 trillion won in 2023. This approach focuses on essential investments and customer-agreed projects. Despite these positive developments, LG Display’s shares closed down 2.2%, reflecting the broader market’s cautious sentiment. The company also reported a modest 1% increase in fourth-quarter revenue to 7.4 trillion won.
