(LEAD) LG Electronics Q4 operating profit down 21 pct on weaker demand, rising costs

우재연 / 2022-01-27 16:11:02
  • facebookfacebook
  • twittertwitter
  • kakaokakao
  • pinterestpinterest
  • navernaver
  • bandband
  • -
  • +
  • print
(LEAD) LG Electronics-Q4 earnings
▲ OLED televisions by LG Electronics Co. are on display at an electronics store in Seoul, in the Oct. 12, 2021, file photo. (Yonhap)

▲ A man passes by the LG Electronics headquarters in Yeouido, Seoul, in the Jan. 7, 2022, file photo. (Yonhap)

(LEAD) LG Electronics-Q4 earnings

(LEAD) LG Electronics Q4 operating profit down 21 pct on weaker demand, rising costs

(ATTN: ADDS more details in last 5 paras, photo; TRIMS)

By Woo Jae-yeon

SEOUL, Jan. 27 (Yonhap) -- LG Electronics Inc. on Thursday said its operating profit fell 21 percent in the fourth quarter from a year earlier due to a hike in logistics and raw material costs and weaker-than-expected holiday spending on home appliances.

Operating profit slumped to 677.7 billion won (US$563 million) in the October-December period, it said in a regulatory filing. Operating profit was lower than the market consensus of 813.7 billion won in a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

But its sales reached a record quarterly high of 21.01 trillion won for the three months ended in December, up 20.7 percent from a year earlier, helped by its strong home appliance business.

The tech giant's home appliance and air solution unit logged record quarterly sales of 6.52 trillion won, up 17.7 percent from the previous year.

Sales of its home entertainment unit came to 4.99 trillion won, up 16.4 percent from a year ago thanks to the growth in demand for premium OLED and large-screen TVs in key European and North American markets.

Its vehicle component solutions unit, considered to be LG's next growth engine, however, continued to log an on-year operating loss, weighed down by pandemic-caused business uncertainties and the global chip shortage. The unit reported 1.68 trillion won in sales, down 12.3 percent from a year ago.

LG's business solutions division, in charge of IT devices, solar panel modules and robots, posted an operating loss of 35.1 trillion won, as a rise in the cost of logistics coupled with a slowdown of solar module sales offset strong demand for premium PCs and gaming monitors, the company said.

For the full year of 2021, the tech company hit a record high of 74.72 trillion won in sales, up 28.7 percent from the previous year, taking over Michigan-based Whirlpool Co. to become the world's biggest home appliances maker.

(END)

(C) Yonhap News Agency. All Rights Reserved