LG Electronics has reported revenues of 15.27 trillion won (US$ 14.06 billion) in Q4 2014 that ended December 31st, 2014, an increase of 4.9% compared to the same quarter last year with operating profit of 275.1 billion (US$ 253.31 million), an increase of 28 percent from the same period the previous year. Net profit for the fourth quarter showed a net loss of 205.7 billion won (US$ 189.41 million) primarily due to the write-off resulting from the closure of LG’s plasma TV operations, said the company.
For the complete financial year of 2014, LG reported a net profit of 501.40 billion won (US$ 474.81 million), a 125% increase compared to 2013. Operating profit was at 1.83 trillion won (US$ 1.73 billion), an increase of 46% YoY. Mobile Communications sector reported a quarterly revenue of 3.78 trillion won (US$ 3.48 billion) , a 5% increase compared to the same quarter in 2013 with annual revenues of 15.06 trillion won (US$ 14.26 billion), a 16% increase compared to 2013 due to increase in sales in North America region, which saw 5.7 million smartphone sales, a 78% increase YoY.
It shipped 15.6 million smartphones in the quarter, slightly less than 16.8 million in the previous quarter which is due to weaker demand driven by the handset distribution reform law, but it saw a 18% increase YoY. In 2014 it shipped 78.2 million mobile handsets. Operating profit margins decreased QoQ due to lower ASP driven by intensifying competition, weaker demand in the domestic market, and unfavorable FX movements, said the company.
It plans improve profitability along with better brand equity while strengthening the presence in the premium segment by launching market leading products, running models more efficiently, and concentrating more on selective markets.