LG Electronics Achieves Record High Annual Sales of 62 Trillion Won... Q4 Operating Profit Hits 'Earnings Shock' (Update)

[Asia Economy Reporter Dongwoo Lee] LG Electronics announced on the 8th that its annual sales for last year were tentatively estimated at 62.306 trillion KRW, a 1.6% increase compared to the previous year. This is the highest figure ever on an annual basis.

During the same period, operating profit recorded 2.4329 trillion KRW, a 10% decrease from the previous year.

In the fourth quarter, LG Electronics posted sales of 16.061 trillion KRW and an operating profit of 98.6 billion KRW. Sales increased by 2.3% from the previous quarter and by 1.8% year-on-year.

However, operating profit plunged 87.4% from the previous quarter, resulting in an earnings shock. Compared to the same period last year, it increased by 30.3%.

Fourth-quarter sales last year fell short of the average securities firms' forecast of around 16.5 trillion KRW, and operating profit was significantly below the expected 280 billion KRW range.

Securities firms analyzed that the prepayment of 5G marketing expenses and the expanded deficit of the MC division due to LTE smartphone inventory adjustments led to the decrease in operating profit.

This content was produced with the assistance of AI translation services.