LG's 2019 profit saved by home appliance business

Embattled mobile business continues to be in the red despite restructuring efforts.
Written by Cho Mu-Hyun, Contributing Writer

LG Electronics posted around 2.4 trillion won, or $2 billion, in operating profit for the full year of 2019, a drop of 10% from the year prior, the company said in its fiscal report.

Its mobile business continued to be in the red throughout the year, amounting to a total of 1 trillion won, or $858 million, in operating loss for the year.

This was offset by its home appliance counterpart, which performed strongly with an annual profit of 2 trillion won, or $1.7 billion.

For the fourth quarter, LG posted operating profit of 102 billion won, or $87 million, a rise of 35% compared to a year ago.

However, the company reported a net loss of 850 billion won for the quarter, due to equity accounted losses from LG Display which is reflected in the fiscal report. LG Electronics holds a 38% stake in the LG Display business.

LG Electronics' home appliance business contributed 122 billion won in operating profit for the quarter, while its TV business secured 110 billion won, its lowest quarterly performance of 2019. This was due to marketing costs being exacerbated by the holiday season, the company said.

Its mobile business, meanwhile, saw a loss of 332 billion won for the quarter, despite restructuring efforts that reduced losses in the previous quarter.

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