In the third quarter, LG Display reported an operating loss of 662.1 billion won (US$489 million), marking the sixth consecutive quarter of losses. However, it is showing an improvement in its performance by reducing its deficit compared to the first quarter of this year, where it had an operating loss of 1.1 trillion won, and the second quarter, with an operating loss of 881.5 billion won.
On Oct. 25, LG Display announced an operating loss of 662.1 billion won for the third quarter. This figure represents a 12.8 percent improvement compared to the same period last year when it was 759.3 billion won. However, the revenue was reported at 4.79 trillion won, a decrease of 29.3 percent.
Despite suffering a sixth consecutive quarter of losses, the operating loss has decreased compared to the previous quarter. However, the market’s expectations fell slightly short, with an operating loss of 570.3 billion won.
LG Display’s ongoing streak of losses can be can be attributed to last year when intense inventory adjustments in downstream industries such as TV and IT products, as well as a reduction in overall panel inventories in the industry ecosystem, lead to deteriorating performance. The third quarter also faced delays in demand recovery and the continued trend of inventory adjustments in downstream industries due to macroeconomic uncertainties.
Nevertheless, LG Display remains focused on enhancing its business structure while continuously driving cost innovation and operational efficiency efforts to reduce the scale of its losses. It has also expressed confidence in achieving a turnaround to profitability in the fourth quarter. According to the consensus data from FnGuide, LG Display’s fourth-quarter operating profit consensus, based on the average forecasts of securities firms, stands at 44.5 billion won (US$32.87 million).
Kim Sung-hyun, chief financial officer (CFO) of LG Display, stated, “We anticipate a return to profitability in the fourth quarter as inventory adjustments in downstream industries ease and large-sized products for year-end peak demand and new mobile product panel shipments are expected to increase.”