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LG mobile still in the red in Q4 despite 28% sales growth
2014-01-27 09:18:00| Telecompaper Headlines
(Telecompaper) LG Electronics reported a small increase in fourth-quarter revenues, helped by strong sales of its smartphones. Revenues rose to KRW 14.92 trillion (USD 14.03 billion) from KRW 14.80 trillion a year earlier, and operating profit increased to KRW 238 million from KRW 117 million. LG still posted a net loss of KRW 64.5 billion for the quarter, due to one-time charges for foreign exchange movements. At the mobile division, revenues were up 28 percent from a year earlier and 18 percent higher versus Q3 at KRW 3.59 trillion. The company shipped 13.2 million phones, up 54 percent year-on-year, thanks to strong sales of LTE phones and high-end devices such as the G2 and Nexus 5. However, the division posted an operating loss for a second consecutive quarter, of KRW 43.4 trillion, due to increased spending on marketing and branding and intensified price competition, LG said. The company said it expects demand for LTE phones to remain strong, but tough price competition will continue as well, as the smartphone market becomes more a mass market. LG said it will continue to invest in its brand and launch new products to meet the diversification in consumer demand. Over the full year 2014, LG Electronics aims for an increase in revenues to around KRW 62.30 trillion, from KRW 58.14 trillion in 2013, and said it plans KRW 3 trillion in capital expenditures.
Tags: sales
red
mobile
growth
Category:Telecommunications