Seoul: LG Display Co., a major South Korean display panel maker, announced on Thursday that it swung to a net profit in the second quarter, driven by a focus on high-end products and cost-cutting efforts. In the three months ended in June, the company posted a net profit of 890.8 billion won (US$652.1 million), shifting from a net loss of 470.8 billion won in the same period last year, as reported in a regulatory filing.
According to Yonhap News Agency, increased sales of organic light-emitting diode (OLED) TV panels helped offset weaker demand for liquid crystal display (LCD) TV panels, contributing to the company's financial turnaround. Additionally, companywide cost innovation played a role in achieving net profitability.
Despite the net profit achievement, LG Display reported an operating loss of 116 billion won, which widened from an operating loss of 93.7 billion won in the second quarter of 2024. The company's sales also declined by 16.7 percent, falling to 5.58 trillion won from 6.7 trillion won over the cited period.
The spokesperson from LG Display highlighted that a reduced supply of smartphone panels to customers, including Apple Inc., ahead of new product launches later this year, negatively affected the operating results.