LG Display, the world’s No. 2 maker of LCDs, said Thursday it posted sales of W6.7 trillion, operating profit of W182.1 billion and net profit of W224.2 billion in the third quarter (US$1=W1,129).
While sales climbed by 4 percent from the previous quarter, operating profit and net profit plummeted by 75 and 60 percent. Compared to a year ago, sales increased 15 percent, but net profit dropped 62 percent.
LG said that the profit loss was due to slowing demand for TV and computer monitors, which pushed down panel prices.
LG Display’s net earnings tumbled 62 percent in the third quarter from a year earlier despite record sales, as weak demand for televisions drove down the price of liquid crystal display panels.
The company – which ranks as the world’s second-largest maker of LCD panels – said yesterday that its net income fell to 224.2 billion won ($198.8 million) in the July-Sept. period versus 595.3 billion won a year earlier.
Operating profits in the third quarter totaled 182.1 billion won, plunging 73 percent from the same quarter last year and hitting their lowest level since the first three months of 2009.
Still, the company reported record high quarterly sales of 6.7 trillion won, up 15.1 percent on-year thanks to increased sales of premium products and expanded market share in several key areas such as laptops.
“As some client companies and distribution channels made inventory adjustments, market conditions changed rapidly,” said Kwon Young-soo, the chief executive officer of LG Display, which is a unit of LG Group. “But we achieved relatively stable financial performance as our differentiated technology helped us see record high quarterly sales.”
Analysts said that LCD panel prices and demand will likely continue to decrease in the fourth quarter, though possibly at a slower pace. “It’s not that the market didn’t grow well, but demand expectations were too high, and it led to a supply glut,” Lee Seung-jin, an analyst at Tong Yang Securities, told Bloomberg yesterday.