Annual profits

LG Electronics sees annual profits drop 10%

LG Electronics recorded 98.6 billion won in operating profit and 16,061 billion won in sales for the fourth quarter of 2019, the company said in its profit forecast, an increase of about 30% and 2 % respectively compared to the same period in 2018.

However, the consumer electronics giant’s fourth-quarter operating profits were only a third of South Korea’s analyst market consensus of 279 billion won; analysts were relatively optimistic about the resumption of the company’s television and mobile phone activities.

The fourth quarter of 2018 was also one of the company’s worst results in recent years with operating profits of just 75.7 billion won, down about 80% from the same quarter of 2017. .

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For the last quarter of 2019, operating profits fell 87% from the third quarter, in which LG said it reduced losses in its mobile business due to restructuring.

As throughout 2019, the home appliance industry was probably the only saving grace, as its mobile business continues to suffer losses and its TV business is hampered by big rival Samsung and upstart Chinese brands like TCL.

Including the fourth quarter, LG reported annual operating profit of 2.43 trillion won and revenue of 62.3 trillion won, a decline of 10% and an increase of 1.6% respectively. LG will announce its full financial report later this month.