LG Display Co's third quarter operating profit rises most in almost 2 years
Korean LCD maker sees third-quarter profit rise to highest level in nearly two years thanks to TVs and new iPhones
LG Display's July-September operating profit rose to its highest level in nearly two years, backed by healthy demand for television panels as well as the release of Apple's new iPhone models.
The world's top liquid crystal display (LCD) maker had tipped both shipments and average selling price for LCDs to pick up sequentially during the third quarter, when analysts believed the company would benefit from a jump in orders as Apple readied the launch of its new larger-screen smartphones.
LG Display, which also counts sister company LG Electronics as a major client, said LCD shipment volume for the third quarter rose from a year earlier, though the average selling price for panels fell in annual terms. For July-September, LG Display reported a 21.8 per cent rise in operating profit to 474 billion won (HK$3.48 billion). That compared with a 442 billion won mean estimate of 36 analysts polled by Thomson Reuters I/B/E/S and marked the strongest level since the fourth quarter of 2012. Revenue fell 0.5 per cent on the year to 6.5 trillion won.
"In the third quarter, panel prices showed an upward trend as a tight supply situation continued due to increased demand for large-size panels," LG Display chief financial officer Don Kim said in a statement.
LG Display said it expects fourth-quarter profit to improve sequentially, forecasting mid single-digit percentage rate panel shipment growth from July-September. The average selling price for panels is likely to remain stable in October-December from the previous quarter, it said.
Researcher WitsView said that August's large-sized panel shipments grew 5.6 per cent from the previous month thanks in part to robust TV panel demand and tipped for further growth in September, indicating favourable conditions for panel makers.