This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

LG Display CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: LPL

Next slide please. This conference call will take an hour. Before we go into the Q&A session, please allow me to highlight our Q2 results, performance highlight and outlook.

Moving on to the revenue and profits on the next slide, during second quarter the demand in Europe and China turned out should be weaker than accepted due to macro-economic situation which resulted in some of the set makers down for the order adjustment. In addition, LG Display strategically cut back supplying the low profitability products. Due to these factors, the shipment increases in second quarter turned out to be lower than expectation.

However, since we managed to increase the portion of a high end premium products such as tablet and FPR 3D in sales. We recorded a high to quarterly revenue in the second quarter at KRW 6.9 trillion up to a percent quarter-on-quarter. Our profitability improved in second quarter mainly due to the increased sales of high end premium products. So operating loss was significantly reduced to KRW 26 billion.

If we excluded the provision for the anti-trust lawsuit from our operating line in second quarter. We would have been turned out to be profitable. Operating profit margin was minus 0.4% while we recorded EBITDA margin of 15%, income before tax was negative KRW 78 billion and net income was negative KRW 112 billion. Moving on to slide four, looking at our financial positions and ratios.

Cash and cash equivalent rose by KRW 262 billion to KRW 2.7 trillion. Inventory increased by KRW 371 billion to KRW 2.6 trillion. It is mainly due to our customers sound right (ph) order adjustment at the end of second quarter. Effected by the macroeconomic situation. In addition the product mix improvement with more high end premiums product portion also affected the inventory in March.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs