June 8 - Amid a sharp rise in the Korean won's exchange rate and increasing raw material costs triggered by the Iran conflict, the market is closely watching whether LG Display (LGD) can sustain profitability in the second quarter.
According to consensus estimates released by financial data provider FnGuide on June 8, LGD is projected to post second-quarter revenue of 5.6861 trillion Korean won and operating profit of 11 billion won. If achieved, this would mark a significant turnaround from the 116 billion won operating loss recorded in the same period last year.
During the company's first-quarter earnings conference in April, LGD CFO Kim Seong-hyun forecasted a return to profitability in Q2. "Although the second quarter has traditionally been a seasonally weak period, we are aiming for profit this year through previously implemented organizational restructuring, business portfolio adjustments, and ongoing cost innovation initiatives," he said.
However, concerns are growing that LGD could slip back into the red. Persistent one-time expenses related to workforce restructuring, combined with rising prices of petrochemical-based display materials and components, are creating multiple headwinds. Some brokerages have even forecast an operating loss of between 150 billion and 450 billion won for the quarter.
Despite the near-term uncertainties, the market generally expects a strong rebound in the second half of the year. As the display industry enters its traditional peak season, LGD's major client Apple is anticipated to launch high-value iPhone 18 Pro and Pro Max models in September. Given LGD's heavy reliance on Apple, the company's performance has historically shown a clear pattern of weaker first-half results followed by stronger second-half performance.
A display industry source noted, "Last year, LGD supplied display panels for three iPhone 17 models - the standard, Air, and Pro Max versions - but not the Pro. This year, the company plans to increase its supply share for the high-margin Pro and Pro Max models launching in the second half, which is expected to further boost profitability."
