Seoul, South Korea - LG Electronics reported lower sales, but a reduced net loss, and turned an operating income for the fourth quarter, with help from flat-screen TVs and smartphones.
Consolidated sales for the quarter, ended Dec. 31, 2011, were 13.81 trillion won ($12.05 billion), which was lower than the prior year's fourth quarter of 14.69 trillion won, but higher than the third quarter's 12.8 trillion.
The net loss for the quarter was 112 billion won ($97.73 million) primarily due to a loss on investments in affiliated companies and net financial expense, LG said. The net loss in the prior year's fourth quarter was 256 billion won.
The quarter's operating profit of was 23 billion ($20 million) compared with an operating loss of 246 billion won in the prior year and a 32 billion loss in Q3. The quarter-on-quarter revenue growth reflected strong performance in home entertainment and home appliances with improved operating profit in the mobile and TV businesses, the company said.
LG Home Entertainment shipped a record high 8.8 million flat-panel TVs from October to December, increasing revenues 17.6 percent from the previous quarter to 6.31 trillion won ($5.5 billion). While quarterly sales declined modestly from the 2010 period, a strong 2011 holiday season and more premium product mix led by Cinema 3D TV resulted in an operating profit of 150 billion won ($130.9 million) in the fourth quarter of 2011.
Full-year 2011 home entertainment sales were 22.38 trillion won ($20.2 billion) with operating profit of 423 billion won ($382 million).
The LG Mobile Communications Company had operating profits of 12 billion won ($10 million) and sales of 2.78 trillion won ($2.42 billion) on the strength of smartphones such as Optimus LTE (Long Term Evolution).
For full-year 2011, mobile sales were 11.69 trillion won ($10.55 billion), a decline of 9.9 percent from 2010.
The LG Home Appliance Company posted record-high quarterly sales of 2.99 trillion won ($2.6 billion) in the fourth quarter of 2011 with strong growth in Korea, the U.S. and developing countries with more energy-efficient product, the company said.
Modestly lower operating profit of 65 billion won ($57 million) in the fourth quarter reflected increased raw material costs and unfavorable foreign exchange rates. Total 2011 home appliance sales were 11.11 trillion won ($10.03 billion), with operating profit of 295 billion won ($266 million).
Full-year 2011 consolidated revenues for all of LG reached 54.26 trillion won ($48.97 billion), down from 55.75 trillion won the prior year. Despite a 2011 net loss of 433 billion won ($391 million), operating profits improved to 280 billion won ($253 million) from 176 billion won ($153 million) for full-year 2010.