Menu
LG posts Q4 net loss despite jump in phone sales

LG posts Q4 net loss despite jump in phone sales

Marketing costs, strong won dampen earnings.

LG Electronics posted a consolidated net loss for the fourth quarter of 2013 as earnings were weighed down by a strengthening won and large advertising expenses for its flagship 5.2-inch G2 Android smartphone.

Seoul-based LG, the second-largest maker of TVs in the world after Samsung Electronics, booked a consolidated net loss of 63.5 billion Korean won (US$60.4 million as of Dec. 31, the last day of the period reported), an improvement from a 478.2 billion won loss in the fourth quarter of 2012 but down from a net profit of 108.5 billion won in the third quarter of 2013.

Operating profit, however, doubled to 238 billion won in the quarter from 117 billion won a year earlier, beating a 223 billion won estimate by 35 analysts surveyed by Thomson Reuters I/B/E/S.

Operating profit can be a useful yardstick of corporate health because it shows the performance of core operations, excluding other factors like investments.

Overall sales at LG were marginally up to 14.92 trillion won from 14.80 trillion won a year earlier.

Its mobile division sold 13.2 million smartphones, up a respectable 54 percent from a year earlier with LTE sales gaining 110 percent, but the unit posted an operating loss of 43.4 billion won from a profit of 56.5 billion won a year earlier.

The company blamed the results on "higher brand marketing expense and intensified price competition in the market."

LG said it expect the smartphone market to continue growing, especially for LTE phones, with competition intensifying.

One of its weapons is the bendy G Flex. Billed as the world's first curved smartphone, the G Flex has a concave, 6-inch 720p OLED display and is hitting the U.S. this winter with availability on AT&T, T-Mobile, and Sprint.

In reporting its earnings for the fourth quarter of last year, rival Samsung Electronics also said the buoyant South Korean currency had depressed its performance, taking about 700 billion won off the value of its earnings.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultsLG Electronics

Featured

Slideshows

Reseller News Platinum Club celebrates leading partners in 2019

Reseller News Platinum Club celebrates leading partners in 2019

The leading players of the New Zealand channel came together to celebrate a year of achievement at the annual Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months.

Reseller News Platinum Club celebrates leading partners in 2019
Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosts alumnae breakfast for Women in ICT Awards

Reseller News hosted its second annual alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers. Photos by Gino Demeer.

Reseller News hosts alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Show Comments