LG Display swings to profit on demand for new iPhone

LG Signature OLED R rollable televisions on show at the Las Vegas Convention Center. The TVs helped deliver a third-quarter earnings boost for the company. (AFP)
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Updated 23 October 2020

LG Display swings to profit on demand for new iPhone

  • South Korean tech giant says Apple sales will offset Huawei sanctions ban as it ends six-quarter run of losses

SEOUL: South Korea’s LG Display reported a profit for July-September, ending a six-quarter run of loss, helped by shipments for Apple Inc’s new iPhone and stay-at-home trends boosting panel demand for TVs and laptops.

LG Display expects rising panel shipments and sales in the current quarter as well and suggested it has pushed back plans to phase out all of its domestic liquid crystal display (LCD) TV panel production by year end to respond to TV demand.

It also painted a positive outlook for its sales to Apple, which would offset the suspension of sales to China’s Huawei as a result of US sanctions.

LG Display posted a third-quarter operating profit of 164 billion won ($145 million) versus a loss of 437 billion won a year earlier.

That topped the 64 billion won expected by 17 analysts, Refinitiv SmartEstimate data showed. Revenue rose 16 percent to 6.7 trillion won, LG Display said in a regulatory filing.

FASTFACT

$145 MILLION

LG Display posted a third-quarter operating profit of 164 billion won ($145 million) versus a loss of 437 billion won a year earlier.

LG Display, which supplies mobile OLED panels for Apple’s iPhone 12, said an expanded supply of mobile OLED panels to an identified strategic customer in North America, helped lift its earnings and it is using its full production capacity to respond to demand from the customer.

It said it will be able to resume business with Huawei after the company along with other suppliers gain US export licences.

“Strategically speaking, it’s a very important client for the company, but when it comes to the volume itself, we are not at the stage of providing mass volume, so when it comes to the impact on business itself, it’s more than manageable.” Chief Financial Officer Suh Dong-hee said during an earnings briefing.

LG Display, which said in January it would halt domestic production of LCD TV panels by year end, said there is no change to its plan to revamp its LCD business structure, but suggested that it would keep some of capacity for the time being to respond to solid demand for TVs.

It said the start of its China OLED TV display fab contributed to its earnings rise, and expected annual sales to reach around 4.5 million units this year, although this would fall short of its earlier target of 6 million, as the pandemic hit demand for high-end TVs earlier in the year.


Egypt expects economic growth between 2.8 and 4% in 2021

Updated 29 November 2020

Egypt expects economic growth between 2.8 and 4% in 2021

  • Unemployment indicators also reflected the economy's development

CAIRO: Egyptian Finance Minister Mohamed Maait said the country was reaching positive growth rates, calling it a great achievement in light of the global conditions brought on by the coronavirus pandemic.

Maait said the estimated rate of economic growth in the fiscal year 2021-2022 would reach between 2.8 and 4 percent.

He said the percentage varied according to how each person perceived it sectorally, and that industries such as tourism and aviation were significantly affected by the spread of the disease.

“We have a priority to make room for the private sector’s participation in development projects,” the minister added.

He explained that there would be strengthened cooperation with the Transport Ministry in implementing its projects in partnership with the private sector.

Egypt had been hoping for growth between 6 and 6.5 percent before the coronavirus crisis broke out.

The country topped the emerging market economies in containing the rate of inflation during the current year, according to data from the Egyptian cabinet, despite the global repercussions of the health emergency.

The International Monetary Fund (IMF) said that Egypt achieved the largest annual decline in the inflation rate in emerging markets in 2020, compared to 2019, with a decline of 8.2 percentage points.

Among the effects of the economic reform plan were inflation rates falling to 5.7 percent during 2019-2020, compared to 13.9 percent in 2018-2019.

Unemployment indicators also reflected the economy's development. 

Recent data from the Egyptian Central Agency for Public Mobilization and Statistics showed the unemployment rate declining to 7.3 percent in the third quarter of this year, compared to 7.8 percent a year ago.

Egypt's monetary reserves rose to $39.22 billion by the end of last October, according to the country's central bank.

The IMF said the performance of the Egyptian economy exceeded expectations.