LG Electronics Achieves Record-High Annual Revenue; Posts 109.4 Billion Won Operating Loss in Q4

Preliminary Results for Q4 Last Year Announced
Record-High Annual Revenue of 89.2025 Trillion Won
Operating Loss Turns Negative Compared to Previous Year
Decline in Operating Profit Due to Marketing and Voluntary Retirement Costs
"Expected to Ease Fixed Cost Burden in the Mid- to Long-Term"

On January 9, LG Electronics announced in a regulatory filing that, on a consolidated basis, it achieved a record-high annual revenue of 89.2025 trillion won last year, according to provisional figures. However, the company posted an operating loss of 109.4 billion won, turning to the red compared to an operating profit of 135.4 billion won in the same period the previous year. Fourth-quarter revenue was reported at 23.8538 trillion won.

Seoul Yeouido LG Twin Towers panorama. Photo by Jinhyung Kang aymsdream@

Despite a prolonged slowdown in global demand, sales continued to grow for the second consecutive year. The accumulated annual revenue of 89.2025 trillion won last year represents a 1.7% increase compared to the previous year.

Operating profit was provisionally tallied at 2.478 trillion won, down 27.5% from the previous year. Profitability was affected by delayed recovery in demand for display products and increased marketing expenditures due to intensified market competition. In the second half of the year, costs related to voluntary retirement as part of workforce restructuring were also included.

LG Electronics explained that major expenditures were completed last year, and from a mid- to long-term perspective, this will help ease the burden of fixed costs starting this year.