Vertical Divider

LG’s 2021 OLED Production: Large-Size Panels To Grow 80% Y/Y To 8m; Small-/Mid-Size Panels Grow 60% Y/Y To 50m 
 
In the 2nd half of 2021, LGD will finally make the shift to OLED profitability, the first time since OLED launch in 2013. Although LCDs will be the sole OP contributor in 2021, OLEDs should generate over 40% of OP from 2022 after the business begins generating profit in 2H21. Given the high LCD ASPs, LGD is expected to retain the LCD production thru 2022 and is likely to continue producing LCD panels as long as they can add to unit profitability.
 
LG Electronics reported Q221 preliminary results of 17.11t won ($15.05b US) and operating profit of 1.11t won ($967.4m US), up 48.4% and 65.5% Y/Y respectively but down 3.9% and 37% sequentially after a record 1Q. LGE’s strong showing is expected come from both the appliance business and the TV space, where increasing OLED TV sales and higher LCD TV prices contributed to revenue growth.  As the company has closed its mobile division, 2nd quarter results will see a charge for the discontinued operation