LG Display has posted higher-than-expected earnings in the third quarter of 2020.
The company posted 164.4 billion won in operating profits and 6.73 trillion won in sales in the quarter.
The operating profit figure beats that of the market consensus of South Korean analysts, which expected operating profits of 65.2 billion won.
It is LG Display’s first profits in seven quarters.
The South Korean display maker said it saw demand for panels from the IT sector rise due to the rise of remote work and online classes caused by the COVID-19 pandemic.
Strong global TV sales and production starting at its Guangzhou OLED factory in China helped sales expand, LG Display said.
Plastic OLED for mobile thanks to expanded production of a new product by its strategic customer __ meaning Apple __ helped improved its profitability, the company said. LG Display said it will provide stable quality and yield rate in the panels to minimize seasonal fluctuation of the business.
Panels for IT accounted for 43% of its sales for the quarter. TV panels accounted for 28% while mobile and other panels accounted for 29%.
LG Display had a debt ratio of 192%. The company’s loan fell 310 billion won for the first time in three quarters.
The company said it will actively manage its finances around the current uncertainties surrounding the pandemic. Remote work and home entertainment was an opportunity but the pandemic has also caused volatility in the market that will require flexibility, LG Display said.
TV OLED panels shipment will expand to double that of the first half of 2020 in the second half, the company also stressed. It hoped to ship 7 to 8 million TV OLED panels next year.
It will also improve its liquid crystal display (LCD) business by shifting some of TV production those for IT.