LG Display returned to profitability during the third quarter of 2020 after reporting seven straight quarters of losses[1].
The South Korean display giant said it posted 164 billion won in operating profit for the quarter, beating the expectations of South Korean analysts by around 65 billion won. The company also posted 6.7 trillion won in sales during the quarter.
According to the company, the COVID-19 pandemic led to increased demand for display panels from the IT sector due to the rise of remote work and online education.
The supply of mobile organic light emitting diode (OLED) panels to a "strategic customer" -- a reference to Apple -- also expanded greatly during the third quarter, the company added. Cupertino recently launched its iPhone 12 smartphones[2], which use OLED panels made by Samsung Display[3] and LG Display.
The third quarter also saw LG Display's TVs experience increased demand due to stay-at-home measures and the opening of its TV OLED panel factory in Guangzhou, China. The supply and demand situation of liquid crystal display (LCD) panels, meanwhile, also improved, allowing the company to reduce its losses when compared to the previous quarter.
While operations at its TV OLED panel factory at Guangzhou initially faced delays due to the pandemic, LG Display has since ramped up production for the second half of the year to double its output from the first half, the company said.
However, LG Display warned that though the pandemic has brought a change in lifestyle, leading to the increased use of TVs and IT devices, it has also increased volatility in the market. To mitigate against this, LG Display said it would react flexibly to these trends.