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LG posts 6% drop in net profit in 2012

31 January 2013
LG Electronics Inc. (LG) announced Wednesday a consolidated revenues of KRW 50.96 trillion ($45.22 billion) and a net profit of KRW 91 billion ($80.75 million) for full-year 2012. Despite a 6 percent revenue decrease from 2011, operating profits increased significantly in 2012 to KRW 1.14 trillion ($1.01 billion) from KRW 379 billion ($342.06 million) in full-year 2011.

Fourth quarter 2012 consolidated revenues were KRW 13.50 trillion ($12.37 billion) with an operating profit of KRW 107 billion ($98.08 million). Unaudited consolidated financial results for the fourth quarter ending Dec. 31, 2012 showed a net loss of KRW 468 billion ($428.96 million) which reflects a fine related to alleged cathode-ray tube pricing issues imposed by the European Commission in December.

The LG Home Entertainment Company reported record sales of flat-panel TVs with 9.3 million units in the fourth quarter resulting in a 17.4 percent revenue increase quarter-on-quarter to KRW 6.44 trillion ($5.91 billion) and full-year operating profit of KRW 542 billion ($480.92 million).

Revenues from 3D and Smart TVs increased with higher unit sales in the United States, Europe and CIS countries. Although the Home Entertainment Company had the strongest quarter of the year in terms of revenue, profitability declined somewhat due to lower average selling prices and increased competition. LG will continue to aggressively market 3D and Smart TVs and plans to expand its share of the premium TV segment in 2013 with Ultra HD TVs and OLED TVs.

The LG Mobile Communications Company reported a 7 percent unit increase quarter-on-quarter in mobile handset shipments to 15.4 million with more than half of the units coming from smartphones. Smartphone shipments grew 23 percent compared to the previous quarter, increasing to 8.6 million devices from the 7 million in the third quarter.

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© The Saudi Gazette 2013

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