SEOUL, KOREA - LG Display, the world’s leading innovator of display technologies, reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending December 31, 2013.
- Revenues in the fourth quarter of 2013 decreased by 19% to KRW 7,079 billion from KRW 8,743 billion in the fourth quarter of 2012 and increased by 8% 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% from the operating gain of KRW 587 billion and a quarter-on-quarter decrease of 34% 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% from KRW 1,814 billion and a quarter-on-quarter decrease of 12% 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% 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 assmall- 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% 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% from the previous quarter.
LCD TV panels accounted for 37% of revenues in the fourth quarter of 2013, while monitors made up 17%, mobile applications 15%, notebook PCs 11% and tablets 20%.
With 101% in liability to equity ratio, 114% in current ratio, and 15% in net debt to equity ratio as of December 31, 2013, the financial structure of the company remains stable.
The following expectations are based on information as of December 31, 2013. The Company does not expect to update its expectations until next quarter’s earnings announcement. However, the Company reserves the right to update its full business outlook, or any portion thereof, at any time and for any reason.
“In 2014, industry panel demand on an area basis is expected to grow by a mid-single digit percentage from the previous year driven by continuous larger-size panel demand, while panel supply is also expected to grow by a mid-single digit percentage. As a result, overall supply and demand situation is expected to be similar to last year.” said Don Kim, CFO of LG Display. “Looking ahead, we expect profits in the first quarter of 2014 to decline quarter-on-quarter due to traditional seasonal decline in panel shipments and price, but we will do our utmost to overcome the challenges by continuous product and cost differentiation strategies.”
“LG Display will continue to make efforts to create greater shareholder value by focusing on future preparation, risk management and financial stability.” he added.
Note: Estimates contained in this statement are based in accordance with the amendment to K-IFRS 1001. Operating profit is defined as earnings after the cost of sales and operating costs are deducted from total revenue.
Earnings Conference and Conference Call
LG Display will hold a Korean language earnings conference on January 23, 2014, at 4 p.m. Korea Standard Time at the Auditorium (B1), Twin Towers, East Wing, Yeouido, Seoul, Korea. An English language conference call will follow at 9:00 p.m. Korea Standard Time, 7:00 a.m. EDT and 12:00 p.m. GMT. The call-in number is +82 (0)31-810-3061 both for callers in Korea and callers outside of Korea. The confirmation number is 9999#. Corresponding slides will be available at the Investor Relations section of the LG Display web site: www.lgdisplay.com.
Investors can listen to the conference call via the Internet at www.lgdisplay.com. To listen to the live call, please go to the Investor Relations section of the web site at least 15 minutes prior to the call to register and install any necessary audio software.
For those who are unable to participate in the call, a replay will be available for 30 days after the call. The call-in number is +82 (0)31-931-3100 both for callers in Korea and callers outside of Korea. The confirmation number for the replay is 109511#. Please receive your personal pin code prior to the conference call at http://pin.teletogether.com/eng; please key in 9999 on the main page to receive a personal pin code.