South Korea`s LG Display Co. recorded strong earnings for the fourth quarter ended December last year thanks to shift to larger-size panels, recovery in panel prices, seasonal demand for small- and medium-sized displays for mobile and wearable devices.

The world`s largest panel maker announced on Tuesday that it posted 904.3 billion won ($777.7 million) in operating profit during the October to December period last year, surging from 323.2 billion won in the third quarter and 60.5 billion won in the same period of the previous year. Sales jumped 18 percent on quarter and 5.9 percent on year to 7.94 trillion won.

Across-the-board rebound in panel prices, favorable currency conditions, and trend-setting innovations like its super-big ultra high definition (UHD) panels and in-TOUCH technology applied panels bolstered its bottom line.

Net income amounted to 824.7 billion won, up 335 percent from the previous quarter.

The company kept up black figures for 19 consecutive quarters. Its annual operating income reached 1.3 trillion won on sales of 26.5 trillion won last year.

Panels for TV accounted for 38 percent of the company`s fourth quarter sales last year, mobile devices 31 percent, laptops and tablets 17 percent and desktop monitors 14 percent.

In order to enhance shareholder value, the company pledged a dividend payout of 500 won per common share for the third straight year, costing it a total of 178.9 billion won.

In a conference call, Kim Sang-don, LG Display`s chief financial officer, predicted strengthening in panel prices to continue for some time due to tight supply from mainstream transition from liquid crystal display (LCD) to organic light-emitting diode (OLED).

The company plans to bolster its leading position in display-making by shifting to sixth-generation plastic display and upgrading its OLED capacity.

Shares of LG Display closed Tuesday at 31,750 won, down 2.31 percent or 750 won from the previous session.

By Kim Dong-eun

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