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Next slide please. This conference call will take an hour. Before we go into the Q&A session, please allow me to highlight our first quarter year 2012 result, performance highlight and outlook.Originally, our panel shipment for first quarter was expected to be similar to the fourth quarter with a channel inventory restocking demand and new model line-up by set makers, as well as launch of our differentiated products. However, some delay in the schedule of differentiated product and new model development resulted into 4% shipment decrease. Operating loss continue to while panel price remained stable after slight decline all in the quarter. Cost reduction recorded low single-digit. There is improvement effort to increase competitiveness in first quarter affected the result negatively due to some delay of new model shipments. As most of the issues have been already resolved, we expected these efforts to bear fruit in second quarter leaving to the meaningful improvement in the results. Looking at second quarter, the demand is expected to be stronger, while the inventory level industry-wide remains low. Order from our customers is expected to be strong with new model line-up in preparation for the sports events. As a portion of differentiated products including FPR 3D, panels for smart devices continues to expand, in an improving market situation, we expected a sound profit in second quarter. However, as the global economic scale remains uncertain, there are some uncertainties in the market which could potentially impact the panel shipments. Looking at the overall Display industry, we feel it is indisputable that LCD has entered maturity and slow growth stage. LG Display has carefully carryout thorough analysis in the strategic direction and investment plans with the following three points under consideration. Number one, the optimization of the interesting LCD business, number two, taking leadership in the largest OLED TV market and number three, finding future growth engine.
China investment which is to be carried out near future will also be a part of LCD business optimization by expanding access to the China market and obtaining cost to comparativeness. We will tell you more about these long-term strategic direction and investment plans in the next quarter earnings.Now moving on to our financial results, on page seven -- on page three, revenue in the first quarter rose KRW 6.6 billion, down 6% quarter-on-quarter. The demand was strong compared to traditional seasonality, however, delay in the differentiated products and modest development schedule resulted in manufacturing capacity decline. This resulted in 4% shipment decline compared to the previous quarter. After panel prices dropped slightly in all the months, it remained stable throughout the quarter. Operating loss increased to KRW 178 billion and operating margin to minus 3%, while EBITDA margin remained stable at 13%. Net income was minus KRW 129 billion. Moving on to slide four, looking at our financial positions and ratios. Cash and cash equivalents rose by KRW 60 billion to KRW 2.4 trillion. Inventory was maintained at the highest level at KRW 2.2 trillion. Debt level rose slightly recording in net debt-to-equity ratio of 29%. Moving on to slide five, looking at our cash flow. Cash at the beginning of the quarter was KRW 2.3 trillion. Cash flow from operating activities resulted in cash inflow of KRW 656 billion. Cash flow from investing activities resulted in an outflow of KRW 1.3 trillion and cash flow from financing activities resulted in an inflow of KRW 677 billion. As a result, the net change in cash was inflow of KRW 60 billion. Moving on to our shipment and ASP on slide six. Looking at our shipment, it decreased by 4% quarter-on-quarter, recording 8.1 million square meters. This is due to the temporary capacity allocation for the development of differentiated products and new developments. ASP based on LCD module price remained flat after slight decline only in the products and it recorded $669 in first quarter, a 2% quarter-on-quarter decreased. Read the rest of this transcript for free on seekingalpha.com