The trend of rising revenues and sales are slated to continue further. Incidentally, prices of LCD TVs larger than 32” have consistently risen in the last 10 months.
LG Display Co Ltd, the world’s largest liquid crystal display (LCD) has reported a fourth-quarter operating profit of $778.33 million (904.3 billion won) thanks to rising panel prices.
The company reported that its revenue surge was caused by an upward trend of panel prices along with a favourable foreign exchange rate.
“The upwards trend of panel prices is anticipated to continue thanks to the low inventory level in the industry and the trends towards large-size panels,” said LG Display Co’s Chief Financial Officer, Don Kim.
As per WitsView, a data provider, the price of LCD televisions larger than 32” have been rising consistently for the last 10 months.
According to its analysis, the rise in LCD TV larger than 32” was due to supply-side factors which include Samsung Display Co’s shutting down of its LCD fabrication plant last year, which caused a tilt in the tight LCD TV market.
LG Display Co reported that its October to December operating profit stood at 904.3 billion won, a rise of 1,392% from the same period last year. It beat analysts’ expectation of a net operating profit of 845 billion.
LG stated that its revenue for this quarter rose by 18% to 7.9 trillion won.
LG Display supplies screens to Apple and LG Electronics.
Last month, the company reported that it was in talks with Samsung Electronics Co for a supply agreement for TV panels.
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