CC image courtery of robpegoraro on Flickr
South Korean technology firm LG Display has announced an operating profit for the eighth consecutive quarter in its first quarter results, despite a 13 per cent quarter-on-quarter decrease in sales.
The company’s operating income for the first quarter was US$90 million.
HumanIPO reported in January LG saw an increase in operating income across its businesses, with operating profits hitting US$1.17 billion in 2013.
LG said the operating profit was mainly due to cost reductions.
“The company maintained an operating profit for the first quarter based on proactive cost reductions and a slowing decline in panel prices”, said Don Kim, chief financial officer (CFO) of LG Display.
“We expect a low-teen percentage increase in area base shipment due to growth in seasonal demand and the trend towards larger-sized TVs. The market is expected to show more stability towards the second half of the year with a stabilization in panel prices and a price increase for some products depending on the supply and demand situation.”
The company shipped a total of 8.33 million square metres of net display area in the first quarter of 2014.
“LCD TV panels accounted for 41 per cent of revenues in the first quarter of 2014, while monitors made up 20 per cent, mobile applications 17 per cent, notebook PCs 12 per cent and tablets 10 per cent,” the company said.
