LG Electronics posts 4Q loss as mobile business struggles

The home appliances and air solution division posted an operating profit of 214.8 billion won, doubling from 92.2 billion won posted a year earlier on the back of the improved sales of premium products.

The revenue was up 11 percent from the previous quarter, overcoming difficulties such as soft global demand for TVs and unfavorable foreign exchange rates coming from weak emerging market currencies.

The LG Mobile Communications company posted an increase of 12 percent in sales from the third quarter to the fourth quarter of 2015.

The company said the Vehicle Component division, which produces parts for automotive infotainment systems, posted 520.4 billion won ($432 million) in sales and 9.7 billion won in operating profits in the October-December period. Based on the reaction experienced at CES® 2016, LG believes this year is ripe for wider acceptance of both new LG OLED TVs and LG Super 4K Ultra HD units.

LG Electronics, the world’s second-largest TV maker, on Tuesday reported an unexpected loss for the final quarter of 2015 as its smartphone business struggled and costs for raw materials rose.

While LG declined to comment on details of the new flagship model, the company said the production cost is expected to increase in line with improved features, but it will try to maintain the price from its predecessor by cutting costs in other areas. LG is further expanding its TV marketing initiatives, exemplified by the company’s first Super Bowl commercial developed by the renowned Ridley and Jake Scott. The company’s high-end washing machines and refrigerators were popular in South Korea, also helping to limit its losses. Sales edged down 4.3 percent to 56.5 trillion won, while its operating profit plunged 34.8 percent to 1.19 trillion won. The figure was down 4.7 percent from a year ago.

The company also reported that, the loss of the Quarter 4 is at 140.4 billion KRW ($117 million). LG expects the smart auto and electric vehicle component business to grow measurably in 2016, highlighted by the LG-General Motors joint development of the Chevrolet Bolt electric auto, which LG plans to leverage to support additional such partnerships.