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LG posts Q4 loss on flat smartphone sales

2016-01-26 08:29:00| Telecompaper Headlines

(Telecompaper) LG Electronics reported improved operating profit for the fourth quarter compared to a year earlier, as better margins in TVs and home appliances helped offset losses at its mobile phone business. The company's operating profit rose 27 percent year-on-year to KRW 349 billion. Sales were still down 4.7 percent to KRW 14.56 trillion, and the bottom line was a net loss of KRW 141 billion, due to losses at LG Display. At the mobile phone business, sales were flat year-on-year at KRW 3.8 trillion, and the operating margin was a negative 1.2 percent, the second consecutive quarter in the red. Worldwide, LG shipped a total of 15.3 million smartphones in the quarter, contributing to a total of 59.7 million units in 2015, a slight increase from the 59.1 million in 2014. LG said it expects the smartphone marketplace to be increasingly competitive in 2016 amid new premium models from competitors and further price competition in the mass-market tier. The introduction of two new flagship models and a more cost-competitive value chain is expected to improve the company's profitability in 2016. 

Tags: sales posts loss flat

Category:Telecommunications

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