South Korea: LG Display Reports Fourth Quarter 2013 Results

LG Display reported Jan. 23 unaudited earnings results based on consolidated K-IFRS for the three-month period ending Dec. 31.

Revenues in the fourth quarter of 2013 decreased by 19 percent to KRW 7,079 billion from KRW 8,743 billion in the fourth quarter of 2012 and increased by 8 percent from KRW 6,579 billion in the third quarter of 2013.

Operating profit in the fourth quarter of 2013 was KRW 257 billion, a year-on-year decrease of 56 percent from the operating gain of KRW 587 billion and a quarter-on-quarter decrease of 34 percent from the operating gain of KRW 389 billion.

EBITDA in the fourth quarter of 2013 was KRW 1,124 billion, a year-on-year decrease of 38 percent from KRW 1,814 billion and a quarter-on-quarter decrease of 12 percent from KRW 1,281 billion.

Net income in the fourth quarter of 2013 was KRW 71 billion compared with net income of KRW 320 billion in the fourth quarter of 2012, and net income of KRW 239 billion in the third quarter of 2013.

LG Display posted an operating profit of KRW1,163 billion in 2013, up by 28 percent compared to the previous year, achieving an annual operating profit of more than KRW 1 trillion for the first time in three years. This was realized mainly by steady demand from TV manufacturing customers, and expanded sales of premium products such as small- to medium-size panels driven by a product differentiation strategy.

“Despite market uncertainties due to the challenging economic environment, our annual operating profit in 2013 increased compared to the previous year. This was mainly achieved by focusing on technology differentiation, such as IPS and FPR 3D, and strengthening our cost differentiation,” said Dr. Sang Beom Han, CEO of LG Display. “We will continue to achieve future competitiveness by securing an advantageous position in new markets, including commercial and automobile displays, while actively pursuing Ultra HD TV and OLED TV businesses.”

LG Display posted a quarter-on-quarter revenue increase of 8 percent in the fourth quarter driven by strong seasonal demand towards the year end, strong sales of large-sized TVs in China, and increased seasonal shipments of small-to medium-size panels. Operating profitability was maintained for a seventh consecutive quarter, although there was a quarter-on-quarter decline in the fourth quarter due to a continuous price decrease for TV panels that started in the third quarter.

The company shipped a total of 9.58 million square meters of net display area in the fourth quarter of 2013, an increase of 9 percent from the previous quarter.

LCD TV panels accounted for 37 percent of revenues in the fourth quarter of 2013, while monitors made up 17 percent, mobile applications 15 percent, notebook PCs 11 percent and tablets 20 percent.

With 101 percent in liability to equity ratio, 114 percent in current ratio, and 15 percent in net debt to equity ratio as of Dec. 31, the financial structure of the company remains stable.