LG Electronics rode brisk sales of major appliances and improved profitability for its OLED TVs to a narrower loss in the fourth quarter.
The Korean supplier cited losses in its mobile segment and an increase in year-end corporate taxes for a Q4 loss of 140 billion won ($117 million). But operating profit rose 27 percent year over year to 349 billion won thanks to strong majap and TV performances.
LG said its home appliance unit accounted for more than 60 percent of the company’s operating profit in the quarter.
In a statement earlier this month, LG executives warned that the continuing slowdown in China’s economy that could have a negative impact on the company’s appliances sales going forward. “Poor economic conditions in China could drive [Chinese brands] to sell products that would have otherwise been consumed domestically, to overseas markets, posing a threat to LG,” Jo Seong-Jin, head of LG’s home appliance unit, told reporters earlier this month.
LG’s mobile unit posted an operating loss of 44 billion won on sales of 15.3 million smartphones in the quarter. That follows a 78 billion won operating loss reported in the previous quarter.
LG has moved up plans to unveil its new flagship smartphone next month in an effort to boost sales.