LG was in the red in Q4 but 2016 results not bad

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LG was in the red in Q4 but 2016 results not bad

Published: 25 Jan. 2017, 20:04

LG Electronics reported its first quarterly operating loss in six years Wednesday as it failed to revive its money-losing smartphone business amid weaker sales of home appliances.

LG posted an operating loss of 35.2 billion won ($30.1 million) for the October-December period of last year compared with a profit of 348.9 billion won for the same quarter in 2015, the company said in a regulatory filing.

The result was in line with LG’s prior earnings guidance that predicted an operating loss of 35 billion won.

Fourth-quarter sales rose 1.5 percent on year to 14.7 trillion won, LG said.

The net loss widened to 258.7 trillion won for the fourth-quarter of last year, from a loss of 140.4 billion won for the same quarter in 2015.

For all of 2016, LG posted an operating profit of 1.3 trillion won, up 12.2 percent year on year and revenue of 55.3 trillion won, down 2 percent from a year earlier.

The home appliance producer’s annual operating profit surpassed 1 trillion won for the first in its history, upheld by robust demand for its TVs and white goods.

LG’s vehicle components division, its long-term growth driver, saw revenue surge 51.3 percent on year to 2.77 trillion won, buoyed by upbeat sales of high-end auto infotainment systems and electric vehicle components. LG is a supplier to GM’s Chevrolet Bolt electric vehicle model.

But the division posted an operating loss of 63.3 billion won in 2016, which LG blamed on a preliminary injection of capital.

BY SEO JI-EUN, YONHAP [[email protected]]