LG Display Q3 Loss Shrinks to 80.6 Billion Won

LG Display announced a consolidated operating loss of 80.6 billion Korean Won for the third quarter of 2024, a significant improvement compared to a loss of 662.1 billion Won in the same period last year. The company's sales increased by 42.5% year-over-year, reaching 6.8213 trillion Won, driven by higher shipments of small products, including mobile devices. Additionally, sales saw a modest quarter-over-quarter increase of 1.7%.

Despite recording losses for three consecutive quarters, LG Display has steadily reduced its loss margins. The operating loss for the first quarter of this year was 469.4 billion Won, which decreased to 93.7 billion Won in the second quarter, and further narrowed to a net loss of 338.1 billion Won in the third quarter.

During the Q3 earnings call, Chief Financial Officer Kim Sung-hyun highlighted that the third-quarter results included one-time costs associated with voluntary retirement programs. He emphasized that the actual operational performance showed significant improvement compared to both the previous quarter and the same quarter last year. Kim further clarified that one-time costs exceeded 100 billion Won, while efficiency measures implemented this year are expected to reduce labor costs by more than 100 billion Won annually.

LG Display continues to focus on advancing its OLED-centric business structure. Compared to the third quarter of last year, the proportion of OLED products in total sales increased by 16 percentage points to 58%. Sales by product category revealed that TV panels accounted for 23%, IT panels—including monitors, laptops, and tablets—comprised 33%, while mobile panels and other products made up 36%, and automotive panels contributed 8%.

The company aims to enhance its operational performance through an OLED-centered strategy, targeting increased profitability by improving operational efficiency and pursuing cost innovation initiatives. Renowned for its superior image quality, OLED technology offers better contrast, faster response times, and more vibrant colors compared to traditional LCDs, making it a key focus area for LG Display. The rising demand for OLED technology has prompted many display manufacturers to shift their emphasis toward OLED production, a strategic move for LG Display to overcome past financial challenges and strengthen its market position.

However, the display market remains highly volatile, influenced by global economic conditions, supply chain disruptions, shifting consumer demands, and competition from other display technologies. Companies like LG Display must navigate these economic uncertainties by exercising cautious investment strategies and exploring new market opportunities, such as foldable displays.