LG Display posted a loss in the second quarter due to seasonal off-peak conditions and one-off expense effects. On a cumulative basis for the first half, it turned to a profit, continuing the trend of improved profitability.
LG Display said on the 21st that on a consolidation basis it recorded second-quarter revenue of 5.6121 trillion won and an operating loss of 107.7 billion won. Revenue rose 1% from the previous quarter (5.5340 trillion won), and the operating loss was in line with the market consensus.
On a cumulative first-half basis, revenue was 11.1461 trillion won and operating profit was 39 billion won. Compared with the first half of last year, when revenue was 11.6523 trillion won and there was an operating loss of 82.6 billion won, operating profit turned positive.
LG Display explained that the first half is a period when finished-goods makers adjust inventories ahead of new product launches in the second half, and that second-quarter one-off expense items related to workforce efficiency also affected results.
However, thanks to the advancement of a business structure centered on OLED, first-half profit and loss improved by 121.6 billion won from a year earlier.
The company plans to strengthen profitability in the second half by securing "best-in-class technology" and driving cost innovation based on an AI transformation (AX). It aims to apply AI across the entire process from development to manufacturing and production to raise efficiency and continue improving its business fundamentals.
For small and midsize panels, it will expand the share of high-end products based on differentiated technological competitiveness and optimize its production system to respond flexibly to market changes.
For large panels, it will strengthen the competitiveness of premium OLED products. In particular, targeting the monitor market, where the shift from LCD to OLED is accelerating, it plans to increase shipments of high–value-added products such as gaming OLED monitors.
Kim Sung-hyun, chief financial officer (CFO) of LG Display, said, "Even in the second quarter, excluding one-off factors, the core business maintained a profit-making trajectory," and added, "In the second half, we will continue to drive annual performance improvement through advanced cost innovation and stronger business competitiveness, and solidify a stable profit structure."