LG Electronics announced a fourth-quarter 2015 operating profit of KRW 349 billion ($301.38 million).
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This is a 27 percent increase from the same period in 2014 thanks in large part to improved quarterly profitability from home appliances and home entertainment products.
The LG Home Appliance & Air Solution Company once again proved to be linchpin, reporting solid operating income of KRW 214.8 billion ($185.49 million) for the quarter and an increase of 57 percent for the year.
Sales across all businesses in the fourth quarter of 2015 totaled KRW 14.56 trillion ($12.57 billion), a 3.8 percent increase over the previous quarter, although competitive conditions and currency impacts led to a 4.7 percent revenue decline from the same period in 2014.
Notwithstanding many bright spots with the introduction of industry-leading products in key categories, 2015 was a generally challenging year. Full-year operating income was KRW 1.19 trillion ($1.03 billion) in 2015, versus KRW 1.83 trillion ($1.58 billion) in 2014.
As a result of sluggish global market demand for TVs and softer growth of smartphone market during 2015, full-year revenues were KRW 56.51 trillion ($48.8 billion), compared with KRW 59.04 trillion ($50.98 billion) the previous year.
The LG Home Entertainment Company reported solid fourth-quarter 2015 operating income of KRW 109.2 billion ($94.3 million). Fourth-quarter revenues were KRW 4.74 trillion ($4.09 billion), up 11 percent quarter-on-quarter as a result of improved OLED and UHD TV sales, although revenues declined year-on-year due to a weaker global TV market and unfavorable foreign exchange movements.
The LG Mobile Communications Company posted strong sales of KRW 3.78 trillion ($3.26 billion), a 12 percent increase from the previous quarter and unchanged from the same period a year ago, assisted by improved sales in North America. Worldwide, a total of 15.3 million LG smartphones were shipped in the quarter contributing to a total of 59.7 million units in 2015, a slight increase from the 59.1 million shipped in 2014.
The LG Home Appliance & Air Solution Company achieved sales of KRW 3.83 trillion ($3.31 billion) in the 2015 fourth quarter, representing slight increase from the same quarter of 2014. In South Korea, revenues increased 13 percent year-on-year due to the popularity of the new TWIN Wash washing machines and premium refrigerators.
The LG Vehicle Components Company posted a 9 percent increase in sales quarter-on-quarter to KRW 520.4 billion ($449.4 million) mostly due to its growing infotainment business. ■