Turns in a loss but company health rock solid.
It’s always nice to be pleasantly surprised by financial results in the current climate so things appear to be looking up for LG…
Despite turning in a net loss of $141m – peanuts compared to many – LG outperformed analyst estimates as overseas subsidiaries soared 14.6 per cent to $9.12bn year-on-year.
Operating profit was $324m – a margin of 3.5 per cent (2.8 per cent higher than Q4) and on a parent basis, the company recorded sales $5.02bn plus an operating profit of $310m. Consolidated sales including affiliates rose 10.7 per cent to $11.28bn with operating profit of $83bn – a margin of 0.7 per cent, 1.5 per cent higher than the previous year ago period.
TVs seem to be a driving force for LG currently with the division’s sales up 18.6 per cent while handset sales were up 22.6 per cent year on year. The company warned it sees the global market declining over 10 per cent year on year but expects to achieve a 10 per cent quarter on quarter boost to the ‘Mobile Communications’ division by focusing on “high-tier, feature-rich products” such as the Arena, Viewty Smart and GD900.
Yep we’ve reached that time in the global economy where net losses are actually good – but LG certainly looks to have nothing to worry about long term.