LG Electronics, Inc. (LGERF.PK), Wednesday, reported a profit for the fourth quarter, compared with a loss last year, reflecting a hefty equity method gain. Sales on a global basis grew 6.8% helped mainly by rising demand especially for LCD TVs and Plasma TVs. Looking ahead to 2010, the company expects year-over-year growth in profitability, driven by premium products in home entertainment and home appliances, and also sees improved demand as the global economy begins to emerge from recession.
On a parent basis, net profit for the quarter was KRW 297.2 billion or US$254 million, compared to a net loss of KRW 671.3 billion or US$476 million in the same period last year.
Latest quarter net income included foreign exchange gain of KRW 25.6 billion or US$22 million, and equity method gain of KRW 630.5 billion or US$539 million, from overseas subsidiaries and affiliates. LG Display, in which LG Electronics owns a 37.9%, booked an equity method gain of KRW 181.6 billion or US$155 million.
Recurring profit, equal to pre-tax profit from continuing operations, was KRW 225.3 billion or US$193 million, versus a loss of KRW 941.5 billion or US$691 million in the comparable quarter a year earlier.
On a parent-basis, total sales were KRW 7.10 trillion, up from KRW 6.59 trillion in the prior-year quarter. Domestic sales were KRW 1.29 trillion, down from KRW 1.34 trillion, while export revenues grew to KRW 5.81 trillion from KRW 5.25 trillion in the year-ago quarter.
On a consolidated-basis, total sales grew 13.7% to KRW 19.54 trillion. On a global basis, sales including LG's overseas subsidiaries rose 6.8% to KRW 14.3 trillion or US$12.2 billion year over year.
Segment-wise, LG Home Entertainment Company's sales rose 18% to KRW 5.9 trillion, or US$5.0 billion, helped by strong product leadership and rising demand for LCD TVs and Plasma TVs. LG Mobile Communications Company reported sales of KRW 4.2 trillion, or US$3.6 billion, down 7.4% from a year ago, impacted mainly price erosion.
LG Home Appliance Company sales increased 6.8% year-over-year to KRW 2.5 trillion, helped by recovery of demand in emerging markets, while LG Air Conditioning Company recorded a 9.4% decline in revenues to KRW 619.9 billion.
LG Business Solutions Company's sales grew 10.8% to KRW 1.3 trillion or US$1.1 billion, helped by higher sales in monitor TVs and partnerships with hotels and major customers.
For fiscal 2009, net profit on a parent basis was KRW 2.05 trillion compared with a loss of KRW 483 billion in the comparable period. Annual total sales on a parent basis increased to KRW 30.51 billion from KRW 27.64 billion in the previous year.
Looking ahead for the first quarter of 2010, on a global basis, the company sees sales growth in LG Electronics, especially from LCD TVs on a US dollar base, as a result of conversion to digital TV in developed markets and increased demand due to World Cup soccer and Olympic Games in 2010.
The company said its mobile communications business is targeting a 19% increase in unit sales to 140 million, focusing on the smartphone category and differentiation in content and services. Solar-cell, LED lighting and new solutions businesses in automotive and commercial areas represent new business engines expected to increase revenues.
In Tuesday's regular trading session, LGERF.PK has been trading in a range of $0.4450 per share.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.