LG reports impressive Q1 results as mobile division heads for the exit
South Korea’s LG Display Co Ltd on Wednesday swung to a profit for the January-March quarter, its third consecutive quarterly profit,
helped by rising panel prices driven by TV and laptop demand as people stayed at home.
The display maker that supplies Apple Inc reported an operating profit of 523 billion won ($469.76 million) for the first quarter compared with an operating loss of 362 billion won in the same period a year earlier.
Total revenue to KRW18.8 trillion – the most LG has ever recorded between January and March.
|Mobile Divison Performance||Q1 2021||Q4 2020||QoQ Change||Q1 2020||YoY Change|
|Sales in KRW / USD||998.7B / 901M||1,385B / 1.24B||-27.9%||998.6B / 901M||0%|
|Profit in KRW / USD||-280B / -252M||-248B / -224M||-12%||-237B / -214M||-18%|
The biggest grower was the Home Entertainment division. People staying at home resulted in recovering demand in North America and Europe – traditionally profitable markets where LG managed to expand its sales of OLED and NanoCell TVs. The upward trend is expected to continue and will be centered around premium products.
That topped the 443 billion won expected by analysts, Refinitiv SmartEstimate data showed.
Revenue rose 46% to 6.9 trillion won, LG Display said in a regulatory filing.
“The demand for large-size displays such as TVs and IT products remained strong in the first quarter thanks in large part to the recent stay-at-home trend, although the first quarter typically tends to be a slow season,” LG said in a statement.
LG added that panels for IT devices accounted for 40% of its revenue in the first quarter, panels for TVs accounted for 31%, and mobile and other devices for 29%.
Prices of LG Display’s mainstay, 55-inch liquid crystal display (LCD) panels for TV sets, jumped nearly 80% from a year earlier, according to data from WitsView, part of research provider TrendForce.
While panel prices are expected to stay strong backed by robust demand, analysts said a shortage of semiconductor parts, especially display driver integrated circuits (DDI) used for LG’s plastic organic light-emitting diode (POLED) panels supplied for Apple’s iPhones, had been affected in the first quarter.
The shortage of DDIs is likely to continue in the second quarter, they said.
($1 = 1,113.3300 won)