LG Display Turns To Profit In Q4; Sees Lower Panel Shipments In Q1

(RTTNews) - LG Display reported that its net income for the fourth quarter of 2016 amounted to KRW 825 billion, compared to a net loss of KRW 14 billion in the fourth quarter of 2015.

"Panel shipments in the first quarter of 2017 are expected to decrease by a mid-single digit percentage due to some production line conversions from LCD to OLED and capacity reduction from allocating some lines for new product R&D activities. In addition, since the demand in large-size panels continues to be strong backed by the growing trends towards large-size panels, the decrease of the panel shipment is expected to be a lot sharper," said Don Kim, CFO of LG Display.

Operating profit in the fourth quarter of 2016 were KRW 904 billion, up from KRW 61 billion driven by differentiated and high value-added products such as large-size Ultra HD panels and in-TOUCH technology, as well as by the upward trend of panel prices and a favorable foreign exchange rate.

Revenues for the fourth quarter of 2016 increased by 6% to KRW 7.936 trillion from KRW 7.496 trillion in the fourth quarter of 2015.

LG Display's Board decided on a dividend of KRW 500 per common share for the third year in a row in order to boost shareholder value. The decision is subject to the approval of the forthcoming Annual General Meeting of Shareholders in March, 2017.