LG Electronics Inc. lost money in the fourth quarter due to the closure of its plasma TV operations but its operating income rose thanks to a mobile business recovery.
The Korean company Thursday reported a net loss of KRW 205.7 billion ($189 million, roughly Rs. 1,161 crores) for the October-December quarter. Operating income rose 28 percent to KRW 275 billion ($253 million, roughly Rs. 1,554 crores) on revenue of KRW 15.3 trillion ($14 billion, roughly Rs. 86,040 crores).
LG said its home appliance business contributed most to its quarterly income, followed by its mobile phone business. LG’s quarterly smartphone sales increased 18 percent from a year earlier to 15.6 million phones, it said.
LG stopped making plasma TVs in November to focus on more popular OLED and LCD TVs.
In a statement, LG detailed its annual 2014 and Q4 financial figures.
LG Electronics Inc. (LG) today announced net profit of KRW 501.40 billion ($474.81 million) for full-year 2014, an increase of 125 percent over 2013 net profit. Operating profit increased significantly in 2014 to KRW 1.83 trillion ($1.73 billion) from KRW 1.25 trillion ($1.14 billion) in 2013, an increase of 46 percent. Full-year consolidated revenue of KRW 59.04 trillion ($55.91 billion) was mainly boosted by a 24 percent increase in smartphone shipments.
Fourth-quarter 2014 consolidated revenue was KRW 15.27 trillion ($14.06 billion) with an operating profit of KRW 275.1 billion ($253.31 million), an increase of 28 percent from the same period the previous year. Net profit for the fourth quarter ending Dec. 31, 2014 showed a net loss of KRW 205.7 billion ($189.41 million) primarily due to the write-off resulting from the closure of LG’s plasma TV operations.
The LG Home Entertainment Company reported full-year operating profit of KRW 509 billion ($482.01 million), an increase of 31 percent year-on-year while full-year revenue increased slightly to 19.38 trillion ($18.35 billion). Fourth-quarter revenue increased 20 percent quarter-on-quarter to KRW 5.43 trillion ($5.00 billion) as a result of increased TV demand during the peak selling season in Europe, CIS and North America. Despite higher competition and weaker currency movements in emerging markets, the company is optimistic that the premium segment – OLED and ULTRA HD TVs – will continue to grow, along with the digital signage industry.
The LG Mobile Communications Company reported a 16 percent increase in annual revenue to KRW 15.06 trillion ($14.26 billion) with help from North America, where shipments increased 78 percent during the fourth quarter of 2014 from the previous year. Fourth-quarter revenue of 3.78 trillion ($3.48 billion) was 5 percent higher than the same period in 2013. A total of 59.1 million smartphones were shipped in 2014, an increase of 24 percent from the previous year, among 78.2 million mobile handsets sold last year. Expecting a challenging year ahead with greater competition globally from various manufacturers, LG will concentrate on improving its brand power, operating more efficiently, and focusing on selective key markets.
Written with inputs from AP
