LG Display Clocks 17% Revenue Decline In Q4 As Panel Shipments Hit By Macroeconomic Conditions - LG Display Co (NYSE:LPL)

LG Display Co, Ltd LPL reported a fourth-quarter FY22 revenue decline of 17% to KRW 7.30 trillion. Revenues increased by 8% on a sequential basis.
LG Display saw a decrease in panel shipments in Q4 due to worsening macroeconomic conditions, as set makers' inventory adjustments further impacted demand in the high-end product sector, which had been solid.
Operating loss was KRW (876) billion versus a profit of KRW 476 billion a year ago due to a continuous decline in mid-sized panel prices.
EBITDA decreased 87.3% Y/Y to KRW 209 billion.
With respect to the market-to-order business, which now accounts for 30% of its revenue, LG Display plans to expand its share in revenue by over 40% in 2023 and 50% in 2024.
LG will further strengthen its position in the automotive display sector and continue to lead the mid-sized OLED market as the rise in smartphone panel shipments in the second half of 2023 enhance its market-to-order business.
"Our preemptive move to reduce the company's inventory in the fourth quarter is expected to improve our performance down the road, and the quarterly result is also expected to improve as we continue to intensely reduce our costs," said Sung-hyun Kim, CFO and Senior Vice President at LG Display.
Price Action: LPL shares closed higher by 2.74% at $5.62 on Thursday.