South Korean electronics and mobile handsets giant has announced today its financial results for the last quarter as well as of year 2013. According to LG, it has achieved revenue of USD 53.10 billion and net profit of USD 203.65 millio for full-year 2013, marking an improvement over 2012 results. Its operating profits increased modestly in 2013 to USD 1.17 billion) from USD 1.08 billion in full-year 2012.
However, the fourth-quarter 2013 consolidated revenues were USD 14.03 billion with an operating profit of USD 223.89 million. Unaudited consolidated financial results for the fourth quarter ending Dec. 31, 2013 showed a net loss of USD 60.21 million, which LG attributes to higher non-operating expenses as a result of foreign exchange movements. The company blamed the strong local currency against the U.S. dollar and the Japanese yen as well as fluctuations in currency rates that usually mean higher costs.
The LG Home Entertainment Company reported a full-year operating profit of USD 369.86 million.. Despite higher demand for LCD TVs in North America, Asia and CIS countries, 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 included more high-end models such as OLED TVs and Ultra HDTVs, which are expected to see strengthening demand in 2014.
The LG Mobile Communications Company reported a 29 percent increase in annual revenues to USD 11.85 billion year-on-year and an 18 percent increase in fourth-quarter revenues to USD 3.38 billion quarter-on-quarter with help from stronger LTE smartphone sales such as 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 improved product mix was offset by higher marketing investments to strengthen LG’s brand equity and intensified price competition.
The LG Home Appliance Company posted sales of USD 2.67 billion in the fourth quarter, down 4 percent from the same period the previous year but full-year revenues increased by 5 percent from 2012. Stronger sales in North America and China were offset by slower growth in developing markets such as India, Central and South America.
The LG Air Conditioning & Energy Solutions Company reported sales of USD 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 in overseas markets. For full-year 2013, the company reported revenues of USD 4.24 billion , an 8 percent higher year-on-year, and operating profit of USD 255.71 million. Demand for commercial air conditioners with high-energy efficiency and inverter-type residential units are expected to help drive further profitability improvements for LG in 2014.
For 2014, LG forecast a 7 percent gain in annual revenue from KRW 58.14 trillion t oKRW 62.30 trillion and about a 20 percent increase in capital spending. The company said it budgeted 3 trillion KRW for capital expenditure for 2014.
