What They Say
LG Display reported its Q2 result with sales of $6.02 billion, up 31% from last year and 1% up on Q1. There was an operating profit of $606 million compared to a loss last year and up 34% from Q1. For the first time in 16 quarters, the firm reached an operating margin of 10%. Net income was $366 billion. IT panels were the biggest segment at 39% of revenues, ahead of TV at 38%. 23% was in mobile displays and other areas. OLED TV shipments for the first half were 3.5 million, 80% of the total for the whole of 2020 and the firm thinks it will ship 8 million this year.
Another turning point is that the firm expects its large OLED business to move to the black in the second half of the year with an operating margin in the mid-single-digit range. It also plans to develop its flexible OLED business.
What We Think
Getting the large OLED business to be profitable has been a tough challenge for the firm but unless there is a collapse in all panel pricing, it should be able to maintain and improve its profitability. I was happy to spot this new image of the LG Paju site that was issued just a few days ago. (BR)
