LG reports Q4 2013 earnings

SEOUL — LG announced revenue of $53.1 billion and net profit of $203.65 million for 2013, marketing an improvement over 2012. Operating profits increased modestly in 2013 to $1.17 billion from $1.08 billion in 2012.

Fourth-quarter 2013 consolidated revenues were $14.03 billion with an operating profit of $223.89 million. Unaudited consolidated results for the fourth quarter that ended Dec. 31, 2013 showed a net loss of $60.21 million primarily due to higher non-operating expenses.

LG’s Home Entertainment division reported an 18 percent revenue increase quarter-on-quarter to $5.58 billion and full-year operating profit of $369.86 million. Full-year revenue declined by 5 percent from the previous year. Operating profit margins increased each quarter in 2013 due to a stronger product mix that includes more high-end models such as OLED TVs and Ultra HDTVs, which are expected to see strengthening demand in 2014.

LG’s Mobile Communications division reported a 29 percent increase in annual revenues to $11.85 billion year-on-year and an 18 percent increase in fourth-quarter revenues to $3.38 billion quarter-on-quarter with help from stronger LTE smartphone sales from devices like the G2 and Nexus 5. Smartphone shipments of 13.2 million units represented an increase of 54 percent from the previous year. The positive impact of an improved product lineup was offset by higher marketing investments to strengthen LG’s brand equity and intensified price competition.

LG’s Home Appliance division reported sales of $2.67 billion in the fourth quarter, down four percent from the same period in 2012 but full-year revenues increased by five percent from 2012. Stronger sales in North America and China were offset by slower growth in developing markets like India, Central and South America. Profitability in the fourth quarter of 2013 improved year-over-year to $78.08 million as a result of improved cost structure and stronger sales of products with high profitability. In 2014, demand for LG appliances is expected to increase in developed markets such as North America and Europe as economic conditions continue to improve.

LG’s Air Conditioning & Energy Solutions division reported sales of $677.33 million in the fourth quarter of 2013, an increase of 8 percent from the same period in 2012, primarily due to the growth of commercial air-conditioner system sales overseas. For 2013, the division reported revenues of $4.24 billion, 8 percent higher year-over-year, and operating profit of $255.71 million. Demand for commercial air conditioners with high-energy efficiency and in verter-type residential units are expected to help drive further profitability improvements for LG in 2014.

Source: LG 


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