LG Display, a loss-maker from 2010 to 2012, has emerged as the conglomerate's new cash cow thanks to diversifying sales to TV and smartphone manufacturers.
LG Display rose to the top spot in the global ultra high-definition TV panel market for the first time in October and began supplying displays for Apple's latest iPhone as well, which has translated into surging profits.
It posted W6.5 trillion (US$1=W1,114) in sales in the third quarter and an operating profit of W474.1 billion -- a bigger profit than LG Electronics and LG Chem.
The stellar profits were achieved by lowering its dependence on sales within the LG group and seeking out new clients abroad.
LG Display's accumulated losses from 2010 to 2012 totaled W1.4 trillion, making it something of a drag on the conglomerate's finances. The company built a new factory in Paju north of Seoul and drastically boosted output, but slow smartphone and TV sales at LG Electronics, which then accounted for 40 to 50 percent of LG Display's business, had a huge impact on the bottom line.
It built an LCD plant in Guangzhou in September to cut costs and offer cheaper products. The panels produced there are supplied to local TV manufacturers Skyworth and Changhong.
Another major client is Apple. LG Display teamed up with Apple from the development stage, and the result of the cooperation is the high-resolution retina display that goes into iPhones.
Chinese smartphone maker Xiaomi is also an important client.
All this has helped LG Display’s sales dependence on other LG affiliates drop to around 30 percent.
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