LG Display returned to an operating profit in the third quarter on stronger seasonal demand for OLED panels, although earnings fell 42 percent from a year earlier as a weaker dollar and rising component costs weighed on profitability.
The South Korean display maker said Thursday that operating profit reached 250.6 billion won ($189.3 million) in the July-September period, reversing a 107.7 billion won loss in the previous quarter.
Revenue rose 12 percent from the second quarter to 6.28 trillion won, but declined 10 percent from a year earlier. Operating profit was also down from 431 billion won in the third quarter of 2025.
LG Display attributed the quarterly recovery to increased shipments of OLED panels for smartphones and televisions during the industry's seasonal peak, when demand typically rises ahead of new smartphone launches and year-end holiday sales.
The company said lower shipments of mid-sized LCD panels, which it has been scaling back in favor of more profitable products, contributed to the year-on-year revenue decline.
A decline in the won-dollar exchange rate and higher semiconductor component prices limited the improvement in operating profit, despite a greater share of high-value OLED products and cost-cutting efforts.
LG Display has been restructuring its business around OLED technology after three consecutive years of operating losses. It returned to an annual operating profit in 2025, its first since 2021.
OLED panels accounted for 61 percent of annual revenue last year, compared with 32 percent in 2020.
The company plans to expand its premium OLED offerings for smartphones and televisions, alongside its lineup of gaming monitors.
"Despite continued uncertainty in the external business environment, including exchange rate and component price fluctuations, we focused on strengthening our business competitiveness and improving operational efficiency," Chief Financial Officer Kim Sung-hyun said in a statement.
Net profit reached 755.6 billion won, helped by foreign-exchange translation gains following the won's appreciation.
mjh@heraldcorp.com