Seoul, South Korea – LG Display reported lower sales and earnings for the fourth quarter, ended Dec. 31, 2013.
Revenues in the fourth quarter of 2013 decreased by 19 percent to 7,079 billion Korean won (KRW) from 8,743 billion KRW in the fourth quarter of 2012.
Operating profit in the fourth quarter of 2013 was 257 billion KRW, a year-on-year decrease of 56 percent from the operating gain of 587 billion KRW.
Net income in the fourth quarter of 2013 was 71 billion KRW, compared with net income of 320 billion KRW in the fourth quarter of 2012.
However, LG Display posted an annual operating profit of 1,163 billion KRW in 2013, up 28 percent compared with the previous year, achieving an annual operating profit of more than 1 trillion KRW 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 as small- to medium-size panels driven by a product differentiation strategy, the company said.
“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.”
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 percent from the previous quarter.
LCD TV panels accounted for 37 percent of revenues in the fourth quarter of 2013, while monitors made up 17 percent, mobile applications 15 percent, notebook PCs 11 percent and tablets 20 percent.