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LGD Outlooks Recovery for Q320
August 02, 2020
LG Display (LGD), expects earnings to recover in 3Q20 on both increased shipments of OLED panels for Apple’s new smartphones and smart watches and full-scale operations of its new 8G OLED facilities in China. In its earnings call, LGD forecasted that its operating income will show significant improvement in Q32-, sequentially. As growth momentum should improve due to OLED shipment growth. In 3Q20, buoyed by favorable seasonality, the small/mid-sized OLED TV and smartphone panel growth. LG expects to ship 19.5m smartphone panels (+156% sequentially), and, 1.45m TV panels (+107% sequentially). Q320, operating are projected to narrow significantly to W112.5bn (vs Q220 operating loss of W480.4bn).
In contrast, despite tepid TV panel earnings, the LCD business enjoyed earnings growth due to the industry’s strong IT panel shipments as large area LCD panel shipments increased from 63% in 1Q20 to 77% in 2Q20. From: business Korea
Table 1:LGD Panel Revenue Share by Application
August 02, 2020
LG Display (LGD), expects earnings to recover in 3Q20 on both increased shipments of OLED panels for Apple’s new smartphones and smart watches and full-scale operations of its new 8G OLED facilities in China. In its earnings call, LGD forecasted that its operating income will show significant improvement in Q32-, sequentially. As growth momentum should improve due to OLED shipment growth. In 3Q20, buoyed by favorable seasonality, the small/mid-sized OLED TV and smartphone panel growth. LG expects to ship 19.5m smartphone panels (+156% sequentially), and, 1.45m TV panels (+107% sequentially). Q320, operating are projected to narrow significantly to W112.5bn (vs Q220 operating loss of W480.4bn).
- Small/mid-sized OLED experienced a low seasonality as 2Q20 utilization rates for the E5 and E6 facilities were estimated at 15% and 30%, respectively.
- Large-sized OLED panel shipments were delayed in normalizing operations at new 8G facilities in China and slow demand in the US
In contrast, despite tepid TV panel earnings, the LCD business enjoyed earnings growth due to the industry’s strong IT panel shipments as large area LCD panel shipments increased from 63% in 1Q20 to 77% in 2Q20. From: business Korea
Table 1:LGD Panel Revenue Share by Application
