South Korea’s LG Electronics In announced its fourth quarter results on Thursday, with operating profit of 76 billion won ($68.5 million), which dropped by 80 percent from that of same quarter last year and in line with the guidance the company announced earlier this month.
Company posted a net loss of 80.7 billion won in the fourth quarter against a net profit of 114.9 billion won a year ago.
Revenue for the fourth quarter also dropped by 7 percent to 15.8 trillion won as company earlier estimated, which the company is attributing this to poor smartphone sales.
For full-year 2018, company’s operating earnings rose by 9.5 percent and marked a new record high to 2.7 billion won.
LG’s sales remained 61.3 trillion won, similar to the year ago sales, which made the company to sell over 60 trillion for second consecutive year.
Company’ quarterly net profit declined because of the struggling LG Display Co, its panel-making subsidiary, as prices of LCD panel dropped. LG electronics owns 37.9 percent shares of LG Display Co, which is the world’s largest maker of LCDs.
The unexcited earning were also attributed to bleak sales of its handsets for having tough competition globally amid lowering demands of smartphones. For the high-end smartphone market LG has been struggling for year and remained sandwiched between Samsung and Apple whereas for lower-end phones Chinese manufacturers are players harder to compete. And for the reason mobile division of the company has been experiencing loss since the first half of 2017. To better excel in the market, during the Mobile World Congress in late February, LG is planning to launch its flagship smartphones along with a 5G model.
Company’s home appliances division came up leading all businesses by posting full-year sales of 19.3 trillion won and with full-year operating earnings of 1.5 trillion won, largely because of its Signature series of OLED TVs.