LG Display’S Q4 profit fell 30 per cent year on year, hit by falling prices for TV panels

2022-07-16 0 By

South Korea’s LG Display Co Ltd (034220.KS) on Wednesday reported a 30 percent drop in quarterly operating profit from a year earlier as a sharp drop in the price of TV panels offset strong shipments of small screens used in computers, laptops and smartphones.The apple Inc (AAPL.O) supplier posted an operating profit of 476 billion won ($397.64 million) for the October-December period, down from 678 billion won a year earlier.It missed an average analyst forecast of Won588bn compiled by Refinitiv SmartEstimate.LG Display said its results were in line with market expectations, except for year-end one-off costs related to profit sharing with executives and employees.Revenue rose 18 per cent year-on-year to 8.8 trillion won.Prices for 55-inch liquid crystal display (LCD) panels for TVS fell 37 per cent between October and December from the previous quarter, according to TrendForce’s WitsView market data.However, analysts said LG Display managed to avoid a bigger impact on profits as only 27 per cent of sales in the quarter came from TV panels.Analysts said shipments of high-end LCD panels for laptops and monitors, whose prices will fall less than LCD TV panel prices in 2021, and higher-margin OLED panels for smartphones and TVS were stable,”Home demand for laptops, tablets and other devices is expected to gradually decline as COVID-19 prolongs and distancing rules are relaxed,” said Kwon Jae-young, vice president and head of small and medium-sized display marketing.”However, the return to office and corporate demand from a gradually improving economy is expected to increase, so overall demand for such equipment in 2022 is expected to remain unchanged from 2021.”LG Display shares closed down 0.7 percent, compared with a 0.4 percent decline in the broader market (.KS11).