LG Display reported today unaudited earnings results for the three-month period ending March 31, 2014. The company's revenues in the first quarter of 2014 amounted to KRW 5,588 billion and operating profit was KRW 94 billion. Net income recorded a loss of KRW 82 billion.

Despite the fact that the first quarter of the year is normally regarded as an off-season, the company recorded an operating profit for the eighth consecutive quarter mainly due to cost reductions. Net income recorded a loss in the first quarter owing to the reduction of deferred tax assets.

The company shipped a total of 8.33 million square meters of net display area in the first quarter of 2014, a decrease of 13% quarter-on-quarter. LCD TV panels accounted for 41% of revenues in the first quarter of 2014, while monitors made up 20%, mobile applications 17%, notebook PCs 12% and tablets 10%.

LG Display will start ramping up the M2 production line in the second half of this year to expand the OLED TV product line-up. At the same time, LG Display will maintain its advantage in the LCD business with its IPS and copper line technology. In addition, it will further strengthen its future by expanding differentiated technologies, such as LTPS and plastic OLED.

"The company maintained an operating profit for the first quarter based on proactive cost reductions and a slowing decline in panel prices", said Don Kim, CFO of LG Display. "We expect a low-teen percentage increase in area base shipment due to growth in seasonal demand and the trend towards larger-sized TVs. The market is expected to show more stability towards the second half of the year with a stabilization in panel prices and a price increase for some products depending on the supply and demand situation."