LG Display Announces Q3 2019 Results, Revenue 5,817.2 Billion won, Operating Loss 436.7 Billion won

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LG Display announced on the 23rd that it recorded sales of 5,827.1 billion won and operating loss of 436.7 billion won in the third quarter of 2019 according to K-IFRS.

Revenue increased 9% QoQ (5.35 trillion won) due to the full-fledged sales of plastic OLED business and the expansion of mobile panel sales.

On the other hand, 3Q operating loss fell last quarter due to a sharp drop in LCD TV panel prices that exceeded market expectations, reduced utilization of related fabs, and increased depreciation expenses associated with the operation of new plastic OLED plants. The operating loss recorded 436.7 billion won.

Net loss was 442.2 billion won and EBITDA was 611.8 billion won (EBITDA margin of 10.5%).

Revenue breakdown in the third quarter of 2019 recorded 32%, a 9% QoQ decline for TV panels due to a decline in shipments due to adjustments in LCD TV fab utilization. Mobile panels recorded 28%, up 9% p QoQ, due to full-scale production of plastic OLED panels. Notebook and tablet panels accounted for 21 percent and monitor panels 18 percent.

Dong-hee Seo, Executive Vice President of LG Display CFO, said, “LG Display is innovating its business structure to reinforce its fundamental competitiveness and have a differentiated competitive edge.” In addition, the company plans to find ways to secure competitiveness from a more fundamental and long-term perspective, while at the same time strengthening its IT, commercial (auto) and auto (business) business capabilities that can differentiate in the existing LCD sector. Large OLEDs will accelerate the market trend utilizing the inherent value of products and continue to stabilize the business of plastic OLEDs for smartphones. ”

In addition, “We will communicate with the market by establishing a long-term vision centering on technologies and product lines that can quickly complete the ongoing LCD structure improvement activities and provide differentiated value.”

[SID Vehicle Display 2019] OLED is optimal for side mirror replacement display

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In October 2018, Samsung Display received a lot of attention by supplying OLED for side mirror replacement to e-Tron of Audi, a global automaker. e-Tron has a camera installed in the side of the existing side mirror, and the driver can check the surroundings through the OLED installed in the vehicle.

Mirrorless cars were discussed at the SID Vehicle Display 2019 panel discussion in September 2019.

Drew Harbach pointed out that “existing side mirrors may have the effect of glare in tunnel-like spaces.” “The cameras and displays can be reduced to provide a better night view.”

He mentioned that the resolution of the display is important, of course, but the contrast and FOV are also very important factors. He also emphasized that the contrast ratio should be very high so that objects can be seen under any environmental conditions.

The high contrast ratio is a very helpful factor in recognizing objects not only in dark nights but also under the strong sunlight of the day.

Panelists mentioned the various displays such as LCD, OLED, micro LED, etc., but OLED is the only display with high contrast ratio and wide viewing angle in the environment where mass production is possible. In addition, OLED has a very fast response time, which is widely used in VR devices and professional monitors where image quality is very important.

OLEDs are mentioned as potential candidates for side-mirror displays and are expected to be used in internal displays, such as clusters and CIDs (center information displays). Korean and Chinese panel makers are actively developing automotive OLEDs, and Samsung Display has forecast that automotive OLED panels will increase to about 3 million by 2022.

Second quarter OLED emitting materials market grew 41.1% compared to the same quarter last year

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According to the OLED emitting material market track published by UBI Research (www.ubiresearch.com), the second quarter earnings was $ 329 million, an increase of 16.6% compared with the previous quarter’s $ 228 million, and 41.1% higher than the second quarter’s $ 233 million.

<Source: 3Q2019 UBI Research OLED Emitting Material Market Track>

As a light emitting materials company with high sales in the second quarter, UDC accounted for 22.7% of the total market with US $ 72.7 million, with Idemitsu Kosan 12%, Merck, Dow Chemical, and Novaled more than 10%. None of the Korean emitting material companies exceeded 10% market share.

UDC’s strongest sales were due to the 6-month-long purchase of dopant material from the BOE, which anticipates it will be difficult to purchase phosphorescent dopant materials in the US-China trade dispute. The phosphorescent red host, phosphorescent green host, and p + materials all exceeded $ 30 million.

According to the analysis of the material usage, the total material usage of the second quarter was 21.3 tons, 21% more than the previous quarter, and 49% higher than the same quarter last year. The high usage of materials compared to the amount is interpreted as a result of a slight decrease in prices as Chinese panel makers use more materials.