Weaker demand for consumer electronics globally has been clouding the outlook for technology firms such as LG, the world’s No. 2 television maker behind Samsung Electronics Co Ltd. But a sustained fall in display panel prices likely helped boost the firm’s TV margins, analysts said prior to the firm’s earnings report .
LG said October-December profit was 349 billion won ($290 million), above a Thomson Reuters StarMine SmartEstimate of 340 billion won derived from a survey of 25 analysts.
But the company reported an unexpected net loss of 140 billion won, which it attributed to unfavourable foreign exchange rates as well as a one-time tax charge taken on its assets.
Operating profit for LG’s appliances division more than doubled to 215 billion won, making it the company’s top earner for a fifth straight quarter on healthy sales of premium washing machines and refrigerators.
LG said, however, that launch of new flagship devices and greater emphasis on cost-effectiveness will boost profitability for its mobile business this year.