- LG Display has had its first profitable quarter since the fourth quarter of 2018.
- The company traced the results back to the home shift.
The COVID-19 pandemic has left many tech companies suffering from reduced shipments and a decline in financial results. However, LG Display appears to have bucked this trend by actually posting its first profitable quarter since the fourth quarter of 2018.
The display maker today confirmed its third quarter 2020 results, posting sales of 6.73 trillion won (~ 5.93 billion US dollars) compared to 5.3 trillion won (~ 4.63 billion US dollars) in the previous quarter and 5.8 trillion won (~ $ 5.1 billion) a year ago.
LG Display also reported operating income of 164 billion won (~ $ 144.6 million), compared to a loss of 517 billion won (~ 455.9 million US dollars) in the second quarter of 2020 and a loss of 436 billion won ( ~ $ 384.5 million) in the third quarter of 2019.
The display maker pointed out the work-from-home trend during the pandemic, as well as a few other reasons:
The 27% quarter-on-quarter increase in sales was due to a steady increase in panel deliveries for IT products, growing trends in work from home and online schooling, and an increased supply of panels for new mobile products from strategic customers, strong worldwide TV sales and the start of mass production at the company’s OLED panel manufacturing facility in Guangzhou, China.
The company found that displays for “IT devices” accounted for 43% of sales in Q3 2020, followed by “mobile and other devices (29%) and TV panels (28%).
LG Display is aiming for a lofty goal for the rest of the year as well and expects shipments of large OLED panels to double in the second half of the year compared to the first half of the year. This is due to the production facility for OLED TV panels mentioned above.
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