LG디스플레이. (사진=연합뉴스)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Display, which has been struggling with the global economic downturn, has failed to avoid trillions of won in losses for the second consecutive year. However, as of the fourth quarter, it posted an operating profit of 131.7 billion won, raising expectations for a rebound in its performance.

LG Display announced on the 17th that it recorded 21.33 trillion won in annual sales and 2.51 trillion won in operating losses last year on a consolidated basis. Sales fell 18.4 percent on-year and the deficit rose 20.4 percent more. The figure is in line with the stock market consensus compiled by FnGuide (sales of KRW 21.442 trillion and operating loss of KRW 2.527 trillion).

As of the fourth quarter, the company recorded sales of 7.3959 trillion won and operating profit of 131.7 billion won, successfully turning into a surplus in seven quarters since the second quarter of 2022. Fourth-quarter operating profit is slightly above market expectations (120.6 billion won).

LG Display has been suffering from a slump due to reverse growth in demand for its flagship TV market and low-priced attacks by Chinese companies. The credit rating has also continued to fall as the debt ratio soared to 315.8% as of the end of November last year. The credit rating, which was AA-level in 2018, has been downgraded three times to AA- in 2019, A+ in 2020 and A last year. However, as the company succeeded in turning into a surplus in the fourth quarter, it seems that further degradation can be avoided for now.

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