January 24, South Korea 's LG Group, a subsidiary of LG Display (LG Display) released the company2016 fourth quarter earnings data. Operating profit for the fourth quarter was 904.3 billion won ($ 778 million), up 1392 percent from a year ago, thanks to higher panel prices, creating a new record.
The company reported revenue of KRW 7.9 trillion in the fourth quarter of 2016, an increase of 18%. In the annual performance, the company's total revenue in 2016 reached 26.5 trillion won, annual operating profit of 1.3 trillion won.
As the world's largest LCD panel maker, LG Display shows that the growing demand for large panels, continued higher panel prices and relatively favorable foreign exchange environment is the main reason for profit growth.
It is reported that,32-inch large LCD TV panel has been maintained for 10 consecutive months of price increases, While in the fourth quarter of 2016, the TV panel business for the LG display contributed about 38% of revenue. Data analysis organization WitsViewShow, Panel prices are mainly tight supply chain. Samsung monitor company last year closed the LCD factory, resulting in the panel market supply and demand tensions.
In addition, seasonal small and medium-sized panel shipments rebound and the company in large ultra-high-definition panel, in-TOUCH differentiated technology layout is also an important factor in LG Display revenue increase.
(Picture from:LG Display)
Don Kim, the CFO of LG DisplayShow, Part of the company's production capacity in 2017 will gradually shift from the LCD display to the OLED display, and on this basis to open up new product lines, which may lead to the first quarter of the panel shipments fell slightly. But he also said that the company will continue to improve the quality of OLED display and production, continue to maintain the leading position in the OLED market.
Through the use of white OLED + color filter technology (RGBW), LG's OLED display with low cost, low production difficulty, it has been a large OLED display of the main players. But in recent years, LG has begun to layout small and medium OLED display project. In July 2016, LG displayAnnounced that it will invest about $ 1.75 billion in South Korea, The development of sixth-generation OLED production line to break the "old rival" Samsung in the small and medium-sized panel market monopoly.
Currently, LG Display is the main display for Apple iPhone and LG TV providers. Earlier this month, due to Sharp "off for", LG has also been considered for Samsung TV panel.
Picture from:IBTimes UK