LG Electronics reported a 125% increase in net profit for last year, rising to KRW501.4 billion ($474.8 million). Turnover for the year of KRW59 trillion ($55.9 billion) was mainly boosted by a 24% increase in smartphone shipments.
LG’s fourth quarter turnover of KRW15.3 trillion ($14 billion) was 5.5% higher year on year. The company recorded a net loss in Q4 of KRW205.7 billion ($189.4 million) primarily due to the write-off resulting from the closure of LG’s plasma TV operations.
LG’s home entertainment company reported a slight increase in turnover for the year to KRW19.4 trillion ($18.3 billion). Fourth-quarter revenue increased 20% sequentially to KRW5.4 trillion ($5 billion) as a result of increased TV demand during the peak selling season in Europe, CIS and North America. Despite higher competition and weaker currency movements in emerging markets, the company is optimistic that the premium segment – OLED and ULTRA HD TVs – will continue to grow, along with the digital signage industry.
The mobile communications business achieved a 16% increase in annual turnover to KRW15 trillion ($14.2 billion) with help from North America, where shipments increased 78% during the fourth quarter of 2014 from the previous year.Turnover in Q4 of KRW3.8 trillion ($3.5 billion) was 5% higher than the same period in 2013. A total of 59.1 million smartphones were shipped in 2014, an increase of 24% from the previous year. LG said it was expecting a challenging year ahead with greater competition globally from various manufacturers and will concentrate on improving its brand power, operating more efficiently and focusing on selective key markets.
