DHAKA: LG Electronics reported improved operating profit for the fourth quarter compared to a year earlier, as better margins in TVs and home appliances helped offset losses at its mobile phone business.

The company’s operating profit rose 27 percent year-on-year to KRW 349 billion. Sales were still down 4.7 percent to KRW 14.56 trillion, and the bottom line was a net loss of KRW 141 billion, due to losses at LG Display.

The net loss narrowed compared to KRW 206 billion a year earlier, reports telecompaper.com.

At the mobile phone business, sales were flat year-on-year at KRW 3.8 trillion, and the operating margin was a negative 1.2 percent, the second consecutive quarter in the red.

Worldwide, LG shipped a total of 15.3 million smartphones in the quarter, contributing to a total of 59.7 million units in 2015, a slight increase from the 59.1 million in 2014.

LG said it expects the smartphone marketplace to be increasingly competitive in 2016 amid new premium models from competitors and further price competition in the mass-market tier.

The company plans to introduce two new flagship models this year and work on a more cost-competitive value chain in order to improve profitability in 2016.

The LG Home Entertainment division increased quarterly operating profit to KRW 109.2 billion versus breakeven a year ago, while revenues of KRW 4.74 trillion declined year-on-year due to a weaker global TV market and unfavorable foreign exchange movements.

However, based on the reactions at CES earlier this month, LG said it believes this year is ripe for wider acceptance of OLED and 4K Ultra HD TVs.

The company plans to step up its marketing for TVs, including its first Super Bowl commercial developed by the director Ridley Scott.

BDST: 1555 HRS, JAN 26, 2016
RR