Benzinga | Jan 26, 2022 06:43AM EST

LG Display Clocks 18% Revenue Growth In Q4; Steep Decline In TV Panel Prices Hit Profit

* LG Display Co Ltd (NYSE:LPL) reported fourth-quarter FY21 revenue growth of 18% year-on-year to KRW 8.81 trillion.

* The ASP rose 2% Y/Y to $806. The display area shipment rose 8% Y/Y to 9.4 M m^2. The capacity rose 7.4% Y/Y to 11.6 M m^2.

* The gross margin contracted 360 bps to 14.9%. The operating profit declined 29.8% Y/Y to KRW 476 billion, with the margin contracting by 360 bps to 5.4%.

* A steep decline in TV panel prices hit the profit that offset solid shipments of smaller screens used for computers, laptops, and smartphones, Reuters reports.

* During October-December, prices of 55-inch liquid crystal display (LCD) panels for TV sets fell 37% from the previous quarter, as per TrendForce's WitsView.

* The EBITDA decreased 6.9% Y/Y to KRW 1.645 trillion. The margin contracted 490 bps to 18.7%.

* It held KRW 4.3 trillion in cash and equivalents and generated KRW 2.1 trillion in operating cash flow.

* "The stay-at-home demand for notebooks, tablets, and other devices is expected to gradually fall as COVID-19 lengthens and distancing rules ease," VP Kwon Jae-young said.

* "However, back-to-office and corporate demand from gradually improving economies is expected to increase, so overall demand for such devices in 2022 is expected to remain similar to 2021."

* Price Action: LPL shares closed lower by 1.64% at $9.00 on Tuesday.