LG Display Clocks 6% Revenue Decline In Q1; Panel Shipments Decline Amid Demand Shrink, China Lockdown

LG Display Co, Ltd LPL reported a first-quarter FY22 revenue decline of 6% year-on-year to KRW 6.47 trillion.
The EBITDA decreased 25.2% Y/Y to KRW 1.2 trillion.
LG Display saw a decrease in panel shipments in the quarter due to low seasonality, industry demand shrink, and a continuous decline in LCD panel prices. In addition, the unexpected supply chain conditions caused by China’s COVID lockdown affected the company’s panel production and shipments.
LG Display looks to scale down its supply & demand-based business, focus on strategic partnerships with its customers, and create new markets based on its OLED technology.
Despite the overall TV market’s 10% Q/Q decline, OLED TVs continued to lead the growing premium TV market, recording above 40% increase in OLED TV sales. Although LG Display saw a Q/Q decrease in OLED TV panel shipments due to TV Set makers’ conservative inventory policies, OLED will likely accelerate its growth with OLED TVs’ growing sales and presence in the premium market.
The company expects to continue to increase performance throughout the second half of the year by focusing on high-end IT products and expanding OLED shipments.
Price Action: LPL shares traded lower by 2.02% at $6.79 on the last check Wednesday.