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LG delivered big profit in 2018, despite major mobile losses
LG at large has enjoyed a pretty successful year, according to its 2018 financial results. The Korean company reported revenue of 61.3 trillion won (~$54.4 billion) for the year, along with a full year profit of 2.7 trillion won (~$2.4 billion).
The company’s 2018 profit exceeds its 2017 figure which, at the time, was LG’s highest annual profit since 2009. LG attributed the latest results to record performance by its appliances and home entertainment divisions.
Its mobile unit, on the other hand, delivered a full year loss of 790.1 billion won (~$700.65 million). But the Korean company said its mobile division showed improvements due to “better material cost controls and overhead efficiencies based on the company’s platform modularization strategy.”
LG says it’ll push 5G smartphones and phones with “different form factors” in order to improve its mobile footing. The company adds that it’ll also focus on “key” markets, such as the U.S. and Korea, where the brand is still doing well.
LG also touched on its Q4 2018 results at large, noting an operating profit of 75.7 billion won (~$67.1 million). This marks a seven percent decline compared to Q4 2017. The Korean colossus blamed lower sales of mobile devices for the decline. In fact, the firm revealed a Q4 2018 loss of 322.3 billion won (~$289.7 million) for its mobile unit, with sales at 1.71 trillion won (~$1.51 billion). By comparison, the unit’s Q4 2017 loss stood at 213.2 billion won (~$192.3 million).
The company is clearly pinning its hopes on 5G phones and foldable phones, but the rest of the industry isn’t standing still either. Foldable phones in particular represent a radical shift for the sector, and a polished, practical product could certainly put LG in a better position for 2019.