LG Display drops with weak won pushing loss
Published: 22 Jan. 2025, 16:20
![LG Display's stretchable display, capable of extending by up to 50 percent of its original size [LG DISPLAY]](https://koreajoongangdaily.joins.com/data/photo/2025/01/22/abe4fff0-8279-43df-a66d-641464f1f8c3.jpg)
LG Display's stretchable display, capable of extending by up to 50 percent of its original size [LG DISPLAY]
LG Display said Wednesday it had swung to a net loss in the fourth quarter of last year, citing the impact of a weakened Korean won.
The company reported a net loss of 839.1 billion won ($584.6 million) for the October-December period, swinging from a net profit of 50.5 billion won a year earlier.
Its fourth quarter operating income fell 36.9 percent on year to 83.1 billion won while revenue increased 5.9 percent to 7.83 trillion won.
Operating profit was 55 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company attributed the net loss to the depreciation of the Korean won, which sharply increased the valuation of its foreign currency-denominated debts during the quarter.
The Korean won plunged sharply against the U.S. dollar in December amid political instability sparked by President Yoon Suk Yeol's short-lived imposition of martial law.
Despite the challenging environment, robust sales of premium organic light-emitting diode (OLED) panels helped boost revenue in the fourth quarter.
“We are focusing on continuously improving our business structure around OLED technology and enhancing profitability through rigorous cost innovation initiatives,” LG Display said.
“We will strive to make a turnaround on an annual basis by further enhancing our business competitiveness.”
For the entire 2024, LG Display posted a net loss of 2.4 trillion won, slightly decreasing from a net deficit of 2.6 trillion won the previous year.
Its yearly operating loss narrowed to 560.6 billion won from 2.51 trillion won over the cited period, and sales rose 24.8 percent to 26.61 trillion won.
Yonhap
with the Korea JoongAng Daily
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