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
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
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.