SEOUL, Korea (Jan. 27, 2016) - LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending December 31, 2015.
Revenue in the fourth quarter of 2015 increased by 5% to KRW 7,496 billion from KRW 7,158 billion in the third quarter of 2015 but decreased by 10% from KRW 8,342 billion in the fourth quarter of 2014.
Operating profit in the fourth quarter of 2015 recorded KRW 61 billion, a quarter-on-quarter decrease of 82% from an operating profit of KRW 333 billion in the third quarter of 2015, and a year-on-year decrease of 90% from the operating profit of KRW 626 billion in the fourth quarter of 2014.
EBITDA in the fourth quarter of 2015 was KRW 882 billion, compared with EBITDA of KRW 1,178 billion in the third quarter of 2015 and with EBITDA of KRW 1,532 billion in the fourth quarter of 2014.
Net loss in the fourth quarter of 2015 amounted to KRW 14 billion, compared with net income of KRW 198 billion in the third quarter of 2015, and with net income of KRW 389 billion in the fourth quarter of 2014.
LG Display announced its fifteenth straight quarterly operating profit at KRW 61 billion, and surpassed an annual operating profit of KRW 1,000 billion for three consecutive years based on its product differentiation and technology leadership amid falling panel prices due to global economic recession and the expanded supply by Chinese panel makers.
The company recorded annual revenue of KRW 28,384 billion, a year-on-year increase of 7% from KRW 26,456 billion in 2014, and annual operating profit of KRW 1,626 billion, a year-on-year increase of 20% from KRW 1,357 billion in 2014. EBITDA for 2015 was KRW 5,001 billion, and annual net income was KRW 1,023 billion, a year-on-year increase of 12% from KRW 917 billion.
Despite the significant panel price decline resulting from global economic recession and the expanded supply by Chinese panel makers, LG Display was able to continue its fifteenth straight quarterly operating profit through expansion of differentiated products such as Ultra HD TV panels, Advanced In-cell Touch (AIT) panels, and In-Plane Switching(IPS) panels.
The Board of Directors meeting decided on a dividend of KRW 500 per common share, in keeping with the previous year's dividend. The decision is subject to the approval of the forthcoming Annual General Meeting of Shareholders in March.
LG Display will strengthen its market leadership by providing customers differentiated value with continuous investment for OLED market expansion and competitiveness enhancement.
TFT-LCD panels for TVs accounted for 34% of revenue in the fourth quarter of 2015, mobile device panels for 32%, tablet PCs and notebook PCs 19%, and monitors 15%.
With 78% in the liability-to-equity ratio, as of December 31, 2015, and decreased inventory asset to KRW 2,352 billion in the fourth quarter, compared with KRW 2,876 billion in the previous quarter, the financial structure of the company remains stable.
Mr. Don Kim, CFO of LG Display, said 'Given the continuing economic uncertainty, we are not in a favorable situation to expect demand to recover in the first quarter of 2016. However, the company aims to sustain market credibility and create value focusing on differentiated technology competitiveness. We will continue preparing for the future of OLED and invest in differentiation including in new OLED facilities.'
Earnings Conference and Conference Call
LG Display will hold a Korean language earnings conference on January 27, 2016 at 4:00 p.m. Korea Standard Time at the Auditorium (B1), Twin Towers, East Tower, Yeouido, Seoul, Korea. An English language conference call will follow on January 28 at 10:30 a.m. Korea Standard Time. (8:30 p.m. EST, 1:30 a.m. GMT) The call-in number is +82 (0)31-810-3061 both for callers in Korea and callers outside of Korea. The confirmation number is 9999#. Corresponding slides will be available at the Investor Relations section of the LG Display web site: www.lgdisplay.com.
Investors can listen to the conference call via the Internet at www.lgdisplay.com. To listen to the live call, please go to the Investor Relations section of the web site at least 15 minutes prior to the call to register and install any necessary audio software.
For those who are unable to participate in the call, a replay will be available for 30 days after the call. The call-in number is +82 (0)31-931-3100 both for callers in Korea and callers outside of Korea. The confirmation number for the replay is 109591#. Please receive your personal pin code prior to the conference call at http://pin.teletogether.com/eng; please key in 9999 on the main page to receive a personal pin code.
About LG Display
LG Display Co., Ltd. [NYSE: LPL, KRX: 034220] is the world's leading innovator of display technologies including thin-film transistor liquid crystal display (TFT-LCD) panels, OLEDs, and flexible displays. The company manufactures and provides TFT-LCD panels in a broad range of sizes and specifications for use in TVs, monitors, notebook PCs, and various other applications including mobile devices and tablets. LG Display also produces OLED light panels in a variety of shapes and sizes. LG Display currently operates fabrication facilities in Korea and China, and back-end assembly facilities in Korea, China and Poland. The company has a total of 50,000 employees operating worldwide. Please visit www.lgdisplay.com for more information.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Additional information as to factors that may cause actual results to differ materially from our forward-looking statements can be found in our filings with the United States Securities and Exchange Commission.