Financial data LG Electronics spoiled smartphone sales
LG Electronics reported revenues in the fourth quarter ended 31 December 2018. They are made up of 15.77 trillion Korean won (13,99 billion U.S. dollars), which is 7 % lower than the same period last year, while operating profit decreased to 75.7 per billion won (67,1 million USD). On the background of quarterly results the figures for the whole year look more optimistic: yoy revenue of LG Electronics surpassed the 61.3 trillion won (us$54.4 billion), and profits increased by almost 10 %, amounting to 2.7 trillion won ($2.4 billion).
If we analyze the activities of the Corporation in its units, a consistently positive return, showed the direction of LG Home Appliance & Air Solution Company LG Home Entertainment Company. In both cases, the annual profit of 1.52 trillion won (1.35 billion U.S. dollars). The business of manufacturing equipment for home entertainment in the fourth quarter showed a decline compared to the previous year by 6 %, but increased by 23% compared to the previous quarter. The home appliances division increased its revenues by 5 %, when compared with the total in 2017, and 3% in the last quarter, again, in comparison with the last year figures of the same period.
But in the segment of mobile electronics Corporation and LG drove less. Division of LG Mobile in the fourth quarter were missing for 16% of revenue it received in the third quarter, and the annual operating loss reached nearly $701 million But, even with such results, the company remains optimistic, hoping for a more positive trend in this market in 2019 with the release of 5G devices and smartphones with new form factors — primarily folding models.
As for the division of automotive components LG Vehicle Components, in 2018, it showed 28% revenue growth. Thus the quarterly increase in sales was 20 %, but compared to the last three months of last year LG Electronics in this business added 71 %.
The B2B sector has brought Corporation LG $2,13 billion in revenue and $148,8 million profit. In the fourth quarter revenue declined 11% compared to last year, but grew by 4 % compared to the third quarter of 2018. On the company’s profit in this segment amounted to $13.2 million have been affected by such factors as the increase in investment, import tariffs and reducing the cost of solar panels.