LG

SEOUL, Korea (July 23, 2019) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2019.
 
■ Revenues in the second quarter of 2019 decreased by 5% to KRW 5,353 billion from KRW 5,611 billion in the second quarter of 2018 and decreased by 9% from KRW 5,879 billion in the first quarter of 2019.
 
■ Operating loss in the second quarter of 2019 recorded KRW 369 billion. This compares with the operating loss of KRW 228 billion in the second quarter of 2018 and the operating loss of KRW 132 billion in the first quarter of 2019.
 
■ EBITDA in the second quarter of 2019 was KRW 458 billion, compared with EBITDA of KRW 681 billion in the second quarter of 2018 and with EBITDA of KRW 679 billion in the first quarter of 2019.
 
■ Net loss in the second quarter of 2019 was KRW 550 billion, compared with the net loss of KRW 301 billion in the second quarter of 2018, and the net loss of KRW 63 billion in the first quarter of 2019.
 
 
LG Display recorded KRW 5,353 billion in revenues in the second quarter of 2019, a year-on-year decrease of 5% from KRW 5,611 billion, due to increased macroeconomic concerns and uncertainty such as the trade war between the U.S. and China, which turned set makers, as well as retailers, conservative, creating weaker-than-expected demand in panels and a consequent decline in panel prices.
 
The company registered KRW 369 billion in operating loss in the second quarter, compared with the previous quarter operating loss of KRW 132 billion, due to one-off expenses incurred to strengthen its capabilities in the mobile sector business and to prepare for the future.
 
Panels for TVs accounted for 41% of the revenue in the second quarter of 2019, up 5% point from 36% thanks to the sales portion increase in OLED TV panels. Mobile devices accounted for 19%, tablets and notebook PCs for 22%, and desktop monitors for 18%, respectively.
 
LG Display recorded 142% in the liability-to-equity ratio, 88% in the current ratio, and 61% in the net debt-to-equity ratio as of June 30, 2019. The slightly increased ratios of liability-to-equity and net debt-to-equity compared with the previous quarter were mainly due to the company’s mid- to long-term investment into its shift towards a more OLED-focused business structure.
 
The company will continue to step up its efforts to shift towards a more OLED-focused business structure in the latter half of 2019 to generate meaningful performance.
 
“We expect a positive outlook for the large-sized OLED business in the third quarter with the Guangzhou OLED fab starting production, which will almost double our OLED production capacity,” said Dong-hee Suh, CFO and Senior Vice President of LG Display. “In addition, a new POLED fab for mobile devices in Paju, Korea will also start mass production soon, increasing the capacity and sales of mobile POLED panels to take that business to the next level. In the business of automotive panels, the company will expand its automotive business area and launch new POLED based automotive products in the latter half of this year for the first time, solidifying LG Display’s market position.”
 
He added, “LG Display is the only company that has a wide OLED portfolio from small-sized wearables to large-sized TVs. Through stabilized small- and large-sized OLED production starting in the second half of the year, the company will increase its opportunities and change its business structure accordingly. As the large-scale investment into OLED that began in 2017 will come to an end this year, the company will respond faster and more flexibly to unexpected external variables in order to create meaningful performance starting from next year.”
 
LG Display also announced today an additional investment of KRW 3 trillion into its Gen 10.5 OLED line in its P10 fab in Paju, Korea. The company plans to solidify its leadership in the OLED business through competitive OLED productivity and continues to create new value with next-generation display technology suc