SEOUL (Reuters) – South Korea’s LG Display Co Ltd (034220.KS) posted a 76 percent fall in third-quarter profit on Wednesday compared with a year earlier, after two quarters of consecutive losses, helped by higher seasonal panel prices.
FILE PHOTO: A woman looks at LG Electronics’ organic light-emitting diode (OLED) TV sets, which are made with LG Display flat screens, at its store in Seoul, South Korea, April 26, 2016. REUTERS/Kim Hong-Ji/File Photo
The Apple Inc (AAPL.O) supplier said operating profit was 140 billion won ($123.2 million) for the July-September quarter, beating an average forecast of 79 billion won from 10 analysts, according to a Refinitiv poll.
Recovering Liquid-Crystal Display (LCD) prices ahead of the year-end holiday period boosted the bottom line but the firm said the trend was not expected to continue into the fourth quarter.
Revenue fell 12 percent from a year earlier to 6.1 trillion won.
The Organic Light-Emitting Diode (OLED) TV panel business turned to profit in the third quarter, supported by sales volume growth. The firm did not disclose the size of the profit.
Eo Kyu-jin, an analyst at eBest Securities, said its costly OLED business was not doing enough to shore up profit, and prices of some panels had already begun to fall.
“Demand will go down again after the holiday season in the fourth quarter is over,” Eo said.
Prices for 50-inch (127 cm) LCD television panels began to rebound in August to $117 after hitting a record low of $109 in June, according to data provider WitsView, part of research provider TrendForce.
Reporting by Heekyong Yang; Editing by Stephen Coates