LG Display sees operating profit rise

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LG Display sees operating profit rise

LG Display, the world’s largest LCD panel maker that supplies panels for Apple devices, yesterday reported a second-quarter profit that missed analyst estimates.

Nevertheless, it posted a 73 percent quarter-on-quarter increase in operating profit and 7 percent higher sales.

While the second quarter operating profit of LG Display fell short of market expectations of 200 billion won ($195 million), it recorded a surplus for the ninth consecutive quarter, posting 163.1 billion won of operating profit. Sales for the second quarter were 5.979 trillion won.

However, compared to a year earlier, the operating profit fell 55.4 percent from 365.9 billion won.

“As Samsung Display, which recorded an operating loss in the first quarter is expected to post 200 billion won to 250 billion won in operating profit for the second quarter, we cannot rule out the possibility that LG can fall behind Samsung again in just one quarter,” said an analyst.

“However, as the company supplies panels for Apple, its sales and operating profit can improve in the third quarter when the iPhone 6 is launched.”

While its lower-than-expected operating profit came from slower sales of LCD panels for smartphones and tablet PCs, the steadily increasing prices of TV panels contributed to the increase in operating profit.

“The company brought about improvements in net profit, despite a sharp exchange rate fluctuation in the second quarter, through structural exchange risk management with a long-term perspective,” said LG Display Chief Financial Officer Kim Sang-don.

By kim jung-yoon [kjy@joongang.co.kr]

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