What They Say
LG Display held its earnings call this week. The firm announce operating profit of $30 million and net profit of $42.6 million on sales of $5.08 billion, down from last quarter as shipments of OLEDs fell, as did LCD prices. Area shipment in Q1 was 8.14 million m², down 13% and area ASP was $660, down 18% both QoQ. The firm expects a further drop in area ASP by 10% in Q2 although the volume of OLED TV panels should increase, with seasonality and fewer supply chain issues.
IT took 48% of the sales, while LCD and OLED TV were only around 10% each, with mobile at 26%, down from 31% last time. The firm plans to continue to shift its LCD capacity from TV to IT. In mobile OLED, it plans to focus on the high end of the market.
Capex will increase this year as the company builds its capacity for mid-sized OLEDs for IT applications although the firm said that B2B had been expected to improve, but that has been slower than forecast because of the macroeconomic situation.
In response to a question about the development of the automotive market, LGD said that the share of OLED is now 30% and is expected to keep increasing.
What We Think
Unsurprisingly, the firm would not comment on negotiations with Samsung. The firm seems to have stopped publishing its quarterly investor presentation, which is a shame. However, it dis have this nice picture below, which looks like the Paju site, to me. (BR)
LG Display – click for high resolution
