FY profits, sales soar on stronger LCD and smartphone demand but currency pulls Korean giant to net loss in final quarter
The Korean giant announced rising revenues of US$53.1 billion and a net profit of $203.6 million for full-year 2013, but finished the year on a loss.
Operating income increased for all business units, as demand for high end TVs and smartphones took off, LG said in a statement.
But Q4 saw LG book a $60.2 million loss, blamed on currency changes and higher marketing costs on ‘G2’ hero smartphone.
LG’s Home Entertainment sales rose 18 percent to $5.5 billion in Q4 attributed to higher demand for LCD TVs in North America and Asia.
Operating profit margins increased each quarter in 2013 due to a stronger product mix that included more OLED and Ultra HDTVs, which LG expect to see strengthening demand for in 2014. However, full-year revenue for the division declined by 5 percent.
LG Mobile unit also soared, with a 29 percent increase in sales to $11.8 billion compared to 2012.
Demand also rose in the fourth-quarter, with revenues hitting $3.38 billion, attributed to stronger demand for 4G smartphones such as G2 and Nexus 5, the mobile made in collaboration with Google.
Overall, smartphone shipments soared 54 percent to 13.2 million in 2013. However, the rise were offset by higher marketing investments to strengthen LG’s brand equity and intensified price competition.
LG Home Appliance sales also rose and increased by 5 percent, although Q4 revenues fell.
Stronger sales in North America and China were offset by slower growth in developing markets such as India, Central and South America.
In 2014, LG expects appliance demand to increase in North America and Europe as economic conditions continue to improve. Air conditioning sales also soared in FY13.
For 2014, LG is targeting a revenues of KRW 62.30 trillion with plans to spend KRW 3 trillion in capital expenditures.
