updated 06:12 am EST, Mon January 27, 2014
Profits across entire company, except for mobile phone unit
LG has seemingly improved its finances from the previous quarter, but managed to achieve a net loss, according to its latest financial results. Revenues of $14.03 billion gave it an operating profit for the quarter of $223.89 million, though this apparently dropped to a net loss of $60.2 million when currency movements were taken into account.
The company also took the opportunity to reveal that it received consolidated revenues of $53.1 billion for the full year 2013, with a net profit of $203.65 million, which is said to be an improvement on the 2012 results. LG's yearly operating profits increased from $1.08 billion to $1.17 billion.
The company's mobile unit had mixed results when compared to the rest of the company. Its fourth-quarter results saw it recording an operating loss of $51.7 million, down from the $39.7 million profit in the same period last year, on sales of $3.38 billion. A total of 13.2 million phones were sold in the period, giving it a 54-percent increase on 2012, and an improvement on the 12 million sold in the previous quarter. Annual revenues increased 29 percent to $11.85 billion.
The Home Entertainment segment of the company increased its quarter-on-quarter revenues by 18 percent to $5.58 billion. Though it had higher demand for LCD televisions in North America and Asia, its full-year revenue declined five percent from 2012, giving it a yearly operating profit of $369.86 million. The financial improvement of the unit over the year was put down to a stronger product mix, which included OLED televisions and Ultra HD devices, which it believes it will sell more of in 2014.
Home Appliances had a slightly muted reduction in sales, down to $2.67 billion in the quarter, but this didn't stop it from improving its year-on-year profit to $78.08 million. This again is put down to higher demand in developed markets, though slower growth in India and Central and South America hampered results. The Air Conditioning & Energy Solutions Company had quarterly sales of $677.33 million in the fourth quarter, a year-on-year increase of eight percent. Full year financial results include revenues of $4.24 billion and an operating profit of $255.71 million.