LG Display Clocks 18 Percent Revenue Growth in Q4; Steep Decline in TV Panel Prices Hit Profit

January 26, 2022Updated: January 26, 2022

LG Display Co. Ltd. reported fourth-quarter FY21 revenue growth of 18 percent year-on-year to KRW 8.81 trillion.

The ASP rose 2 percent Y/Y to $806. The display area shipment rose 8 percent Y/Y to 9.4 M m². The capacity rose 7.4 percent Y/Y to 11.6 M m².

The gross margin contracted 360 bps to 14.9 percent. The operating profit declined 29.8 percent Y/Y to KRW 476 billion, with the margin contracting by 360 bps to 5.4 percent.

A steep decline in TV panel prices hit the profit that offset solid shipments of smaller screens used for computers, laptops, and smartphones, Reuters reports.

During October-December, prices of 55-inch liquid crystal display (LCD) panels for TV sets fell 37 percent from the previous quarter, as per TrendForce’s WitsView.

The EBITDA decreased 6.9 percent Y/Y to KRW 1.645 trillion. The margin contracted 490 bps to 18.7 percent.

It held KRW 4.3 trillion in cash and equivalents and generated KRW 2.1 trillion in operating cash flow.

“The stay-at-home demand for notebooks, tablets, and other devices is expected to gradually fall as COVID-19 lengthens and distancing rules ease,” VP Kwon Jae-young said.

“However, back-to-office and corporate demand from gradually improving economies is expected to increase, so overall demand for such devices in 2022 is expected to remain similar to 2021.”

By Anusuya Lahiri

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