Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
LG Display gaining ground for annual dividends
By Kim Bo-eun
LG Display CEO Jeong Ho-young
By Kim Bo-eun
Handsome earnings projections for LG Display this year are increasing the possibility that the company will resume dividend payouts for investors as early as next year.
The LG Group affiliate revealed its first-quarter performance, an “earnings surprise,” with revenue driven by a surge in demand for panels used in laptops, tablets and TVs amid the COVID-19 pandemic.
"It is a little early to be discussing dividends at this point, given dividends are paid out on an annual basis, and this will be decided upon at the general shareholders' meeting to be held next March after the earnings for 2021 are reported in January," a senior LG Display official said. "Resuming dividend payouts will depend on this year's earnings and the company's financial situation, and when the circumstances are right the management will consider this."
Posting an annual profit will prompt the display manufacturer to resume dividend payouts that have been suspended for the past three years during which the company posted deficits. The firm is forecast to record an annual net profit exceeding 1 trillion won this year.
Analysts say LG Display is set to see an earnings boost given the rise in LCD TV prices will likely continue through next year. Solid earnings will also be backed by growing demand for organic light-emitting diodes (OLEDs). First-quarter shipments of OLED TV panels came close to the amount for the fourth quarter, which is the peak season for the business. LG Display is aiming to sell 8 million OLED TV panels this year.
LG Display invested heavily from 2018 to 2020 in setting up OLED manufacturing facilities amid the shift from LCD to OLED. Given the company has no OLED investment plans this year, this will likely give it room to make dividend payouts next year.
The display maker's net profit was 265.8 billion won for the first three months that ended March 31 compared with a net loss of 198.9 billion won in the same period a year earlier. Operating profit came to 523 billion won, up from an operating loss of 361.9 billion won recorded in the first three months of last year. Sales came to 6.88 trillion won, up 46 percent from 4.72 trillion won.