LG posts a small profit for 2012, phone division doing okay
LG announced its financial results for the final quarter of 2012 and for the full year. The company ended up with a small net profit, due to a big fine from the European Commission over the CRT price fixing scandal.
That aside, the company saw its full year revenue drop 6% year over year, but operating profit went from $342 million in 2011 to $1.01 billion in 2012. However, net profit was only $80.8 million as LG was fined €295 million (around $400 million), which accounts for a lot of the difference.
Anyway, LG’s phone business brought in $2.58 billion in revenues in Q4 2012, up both year over year and quarter on quarter. During that quarter, LG shipped 15.4 million phones, over half of which were smartphones.
Demand for LTE-enabled smartphones (like the Optimus G and Optimus Vu II) and 3G smartphones (like the Nexus 4 and the L Series phones) was strong. In fact, with LTE networks launching in more and more markets (especially Europe), LG plans to focus on LTE-capable phones and launch a successor to the Optimus G, the L Series and start a new F series of mass market LTE-enabled phones.
LG’s mobile division saw a decrease in revenue for the full year 2012, but the operating profit was in the black (the division posted an operating loss in 2011).
The TV business did very well– it posted record sales of 9.3 million units in Q4 and an operating profit of $480.9 million for the full year. Sales of 3D TVs and Smart TVs are going well and LG plans to expand its presence in the high-end TV market with OLED TVs and UHD TVs.
LG’s two other divisions, Home Appliance and Air Conditioning & Energy Solutions saw flat revenues in Q4.