While LG’s mobile division continues to struggle, the wider company is booming. Not only did LG acheive a record full-year revenue of 61.4 trillion won ($55.4 billion), its profits soared to 2.47 trillion won ($2.24 billion) – a massive 85% increase compared to 2016.
You can read LG’s full statement here.
Original story: LG reported its quarterly earnings on Monday. Sales are up an estimated 14.8 percent, to 16.9 trillion won ($15.8 billion), and operating profit is estimated to be 366.6 billion won ($343 million). That’s an 84 percent increase in earnings, after a Q4 2016 loss of 35.2 billion won ($33 million). Profits still fell short of the 471 billion won ($440 million) industry experts estimated.
Despite a weaker-than-expected fourth quarter, 2017 marked the second highest operating profit in LG’s history. The South Korean tech giant reported an operating profit of 2.4 trillion won ($2.2 billion) for 2017, up from 1.3 trillion won ($1.22 billion) in 2016. It fell just short of its 2009 numbers when it posted an operating profit of 2.6 trillion won ($2.4 billion). 2017 was also the first year it broke the 60 trillion won sales mark in a single year, coming in at 61.4 trillion won ($57.4 billion).
The increase in profits and sales are likely due to LG’s success in the OLED television market and in high-end appliances, according to analysts. LG didn’t offer a net profit for Q4 or a breakdown for each segment of its business. Those numbers will likely be released when LG finalizes its earnings later this month.
Analysts predict a 10 percent increase in sales for LG’s mobile division due to the V30 and Q lineup. However, it appears the division still lost money. Predictions point toward a loss of about 200 billion won ($187 million). LG seems to be doing everything it can to turn it catch up with rivals like Samsung. It recently replaced its mobile chief, and we’ve seen rumors of a rebranding for the G series. If the predictions come true be, LG’s mobile division will have lost money for 11 consecutive quarters.