Korean display giant LG Display Co. on Thursday reported its first operating profit in two years in the third quarter, driven by increasing sales of specialty products and seasonal demand growth.
Net profit came to 158.2 billion won ($144.5 million) in the July-September period, reversing from a 687.5 billion won loss the previous year, the company said in a regulatory filing.
Revenue rose 21.1 percent on-year to a record 7.6 trillion won, while operating profit came to 253.4 billion won, shifting from a 492.1 billion won loss a year earlier.
The third quarter marked LG's first profit gaining quarter in two years since a 182.1 billion won operating profit in the third quarter of 2010.
"Although the macro-economic environment has been continually challenging, LG Display accomplished a turnaround and a record high in quarterly sales through the strength of its differentiated specialty products such as FPR 3D, high resolution monitor panels and AH-IPS panels for smart devices," Han Sang-Beom, CEO of LG Display, said in a statement.
The turnaround was largely powered by improving sales of specialty products, such as panels for 3D TVs and Apple Inc.'s mobile devices, which offset feeble demand for TV panels.
The company currently holds a dominant share of panel supplies for Apple products -- 40 percent for the iPhone, 60 percent for the iPad and 90 percent for laptops, according to Macquarie.
LG shipped a total of 9.17 million square meters of net display area in the third quarter, which marks a 7 percent increase from three months earlier.
By product, LCD panels for TVs, monitors, laptops, tablet PCs and mobile applications respectively claimed 47 percent, 16 percent, 13 percent, 15 percent and 9 percent, in terms of revenue, according to the company.
LG painted a rosier picture for the fourth quarter, citing growing demand for high-end panels as well as increasing display area shipments.
"LG Display's total display area shipment is anticipated to increase by a high single-digit percentage compared to the third quarter," said LG Display Chief Financial Officer James Jeong, adding overall prices are likely to remain stable in the October-December period.
In a recent report, research firm DisplaySearch estimated the average panel size growth for LCD TVs and mobile phones to grow 9 percent and 38 percent, respectively, through 2010 to 2013.
LG Display is one of the world's biggest LCD makers. On a revenue basis, the company claimed a leading 28.3 percent market share in the large-area segment, which refers to 9.1-inch or larger panels, in September, according to the data by research firm DisplaySearch.
Its rival Samsung Electronics Co.'s display affiliate chalked up a 21.5 percent market share in the same month.
Shares of LG Display closed at 30,150 won on the Seoul bourse, down 1.15 percent from Thursday's close. The third-quarter earnings were released after the stock market closed. (Yonhap)