LG Display, a global leader in display technology, has released its financial results for the third quarter of 2023, reporting revenues of KRW 4.785 trillion.
While the company experienced a challenging quarter with a KRW 662 billion ($491.11 million) operating loss, LG Display, one of the leading suppliers to Apple, demonstrated resilience in the face of macroeconomic uncertainties and ongoing inventory adjustments in downstream industries. This is LG Display’s sixth consecutive quarterly loss.
Despite these challenges, the impact on LG Display’s revenues varied by product category, including TVs, IT products, and mobile devices. The company managed to maintain revenue levels consistent with the previous quarter, signaling stability in a turbulent market.
Moreover, LG Display’s operating losses were notably reduced compared to the previous quarter and the same period last year. This reduction indicates a significant performance improvement driven by the company’s dedication to advancing its business structure, innovating its cost structure, and enhancing operational efficiency.
In the breakdown of revenue by product category, panels for TVs accounted for 23 percent, panels for IT devices (including monitors, laptops, and tablet PCs) represented 40 percent, mobile and other devices contributed 28 percent, and automotive display panels constituted 9 percent of the total revenue.
LG Display is now poised to strengthen its core businesses in response to market demand and evolving business environments. The company is committed to improving its profit structure through continuous cost innovation at the organizational level.
For its large-sized OLED business, LG Display will focus on maintaining leadership in the premium TV market. They plan to do this by offering a customer-oriented product portfolio centered on ultra-large products, all while ensuring profitability through cost innovations, such as reducing the material costs of core components.
In the small- and mid-sized OLED business, LG Display aims to expand panel shipments for mobile products by leveraging its increased production capacity. Simultaneously, the company is working on solidifying its OLED technology leadership for IT devices in preparation for mass production and distribution in 2024.
Within the automotive display business, LG Display plans to secure its position as a leading force in the market. They intend to achieve this by obtaining more orders and sales through their differentiated technological prowess in Tandem OLED and high-end LCD, stringent quality control, and a reliable supply capacity.
“We are accelerating the reorganization of our business structure and gradually improving profitability by implementing cost innovation. We expect to achieve a turnaround in profit in the fourth quarter as excessive panel inventory adjustments are eased in downstream industries and panel shipments for mid- and large-sized OLEDs and new mobile devices increase to meet seasonal demand,” Sung-hyun Kim, CFO and Senior Vice President at LG Display, said in its earnings report.
LG Display remains committed to adapt to market fluctuations and delivering high-quality displays to consumers around the world. The company’s strategic efforts towards innovation and cost-effectiveness continue to drive its resilience and progress.