(LEAD) LG Electronics logs record loss in 2010

January 26, 2011 1:00 pm 

By Lee Youkyung

SEOUL, Jan. 26 — LG Electronics Inc., the world's No. 3 mobile phone maker, said Wednesday that it posted a record loss in 2010, hurt by its belated entry into the lucrative smartphone market and weak global demand for televisions.

Net loss stood at 635.9 billion won (US7.2 million) last year, compared with a net profit of 1.15 trillion won in 2009, the company said in a regulatory filing.

Sales fell 4.2 percent from a year ago to 29.24 trillion won last year, and operating loss amounted to 1.1 trillion won, compared with 1.41 trillion won of profit in 2009, it said.

"Due to the price declines in flagship products, including mobile devices and TVs, the profitability dropped compared with the previous year," the company said in a regulatory filing.

In an October meeting with investors, LG's chief financial officer Jung Do-hyun said the company's fourth-quarter result "does not appear bright," compared with that of the previous quarter when its operating loss stood at a record 185.2 billion won.

He added that the company's mobile phone business will not make a turnaround until the first or second quarter of this year and its TV business will face bigger losses as the intensifying competition in the industry batters TV prices.

Analysts at HMC Investment Securities Co. and Shinhan Investment Corp. forecast that LG's fourth-quarter operating loss widened from the previous three months to a record quarterly loss, as its phone business stayed in the red while TV losses deepened.

The company is scheduled to release its fourth quarter result and consolidated earnings, which include results from overseas affiliates, at 1 p.m. (PNA/Yonhap)

LDV/mlc

Comments

Comments are closed.