LG Display disclosed the financial data relating to first quarter of 2022. The division that manufactures panels for TV, monitors and mobile devices recorded revenues of approximately 4.8 billion euros, down 6% compared to the first quarter of 2021 and 27% if compared with the last quarter of last year. Operating profit was 38 billion wonapproximately € 28.5 million, 93% less than the 523 billion won (approximately 392 million euros) carried over to the same period of the previous year.
Net income also fell significantly, going from 266 billion won in the first quarter of 2021 and from 180 in the last quarter to 54 billion in the first quarter of 2022, about 40 million euros. The results are linked to a decrease in panel sales: shipments fell due to the low seasonality, the decrease in demand and the continuous decline in the price of LCDs. Added to these factors were unexpected difficulties in the supply chain of components caused by the lockdown in China.
TV and mobile panels accounted for 26% of revenue each; the remaining 48% came from the IT sector which includes monitors, screens for laptops and tablets. Sales of OLED TVs in the first quarter increased by 40% despite the negative trend of the global marketdown by 10% compared to the previous quarter (the last of 2021).
Shipments of panels, on the other hand, decreased (again compared to the last quarter of 2022) due to prudent inventory management by television manufacturers. Despite this, however, it is believed that in the course of 2022 the sales of OLED TVs will record further growth and increase the share in the premium segment.
As for the OLED TV panels, the Korean giant has confirmed that starting from the second quarter all the models produced will be OLED.EX, the latest evolution presented at CES 2022. OLED.EX guarantees a higher maximum luminance up to 30 % compared to a conventional OLED panel. LG Electronics, on the other hand, prefers to talk about OLED evo to use all the features of the panels as it sees fit (we talked about it here).