LG Electronics announced their financial results for Q4 2015, with an operating profit of $300 million from sales of $12.5 billion. Full-year operating income was $1 billion, down from $1.58 billion in 2014, from revenues of $48.8 billion (down from $50.1 billion in 2014) due to sluggish demand for TVs and soft mobile phone sales.
On the positive side, LG saw improved OLED TV sales in the fourth quarter, and LG believes that 2016 will see wider acceptance of their new OLED TVs and the company will continue to expand its TV marketing initiatives.
In a different announcement, LG Display said that it will invest $380 million to expand its OLED TV production capacity. LGD will convert an existing LCD production line to OLED production. The investment will begin in Q1 2016 and will be completed by Q2 2017.
In August 2015 LG Display announced plans to invest around $8.5 billion in OLED capacity in the next three years as the company shifts its focus to OLED displays. Later in November LGD announced that it will build a new OLED display plant in Paju, Korea. The P10 fab will mainly make large-size OLED TV panels and flexible OLED panels. The total investment in the P10 plant is estimated at KRW10 trillion ($8.7 billion USD).
It seems that the new OLED expansion announcement comes as LGD wants to increase production faster than previously planned, with new capacity expected by the first half of 2017.