[Click eStock] "LG Display, 3Q Deficit Expected to Continue... 4Q Profit Forecasted"

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment & Securities predicted on the 28th that LG Display will continue to incur losses in the third quarter. However, it is analyzed that the company will return to profitability in the fourth quarter thanks to organic light-emitting diode (OLED) technology.

Korea Investment & Securities Research Center stated, "An operating loss of 149.9 billion KRW is expected in the third quarter, indicating continued deficits." The third-quarter sales are expected to increase by 23% compared to the second quarter, reaching 6.9 trillion KRW.

[Image source=Yonhap News]

The Research Center of Korea Investment & Securities forecasted, "If set inventory is not cleared, the slowdown in panel area shipments is expected to continue. However, despite continued LCD losses in the third quarter, the peak season for mobile OLED and partial normalization of OLED TV panel shipments will reduce the scale of losses."

Fortunately, it is expected to return to profitability starting from the fourth quarter.

The Research Center added, "From the end of the third quarter, the decline in LCD prices will stop, and the OLED business will turn profitable. An overall operating profit is expected in the fourth quarter."

Meanwhile, LG Display posted an operating loss of 488.3 billion KRW in the second quarter, falling short of consensus estimates. This was due to the decline in LCD prices and production disruptions of devices such as notebook PCs caused by lockdowns in China. The LCD division is estimated to have recorded an operating loss exceeding 200 billion KRW.