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LGE Reports Preliminary Q419 Earnings Results of KRW 16.1t and Operating Profit Of KRW 98.6b
January 27, 2020
LG Electronics announced preliminary earnings results for the fourth quarter and full-year of 2019 with consolidated revenues of KRW 16.1 trillion in the fourth quarter of 2019 and an operating profit of KRW 98.6 billion. Total annual sales reached almost KRW 62.3 trillion, the highest annual sales in LG history, surpassing 60 trillion won for the third year in a row, with operating profit of KRW 2.4 trillion expected to be 10 percent lower than the previous year.
LG’s smartphone division has been hemorrhaging money seemingly no matter what the company tries to do. Gimmick after gimmick hasn’t saved them, and even launching a software update center in order to roll out frequent updates proved fruitless. Speaking at CES, the company’s new CEO, Kwon Bong-seok, said “LG Electronics mobile business is going to be profitable by 2021. I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers.” This isn’t the first time that the company has attempted to rethink their strategy when it comes to mobile.
Kwon never elaborated as to how the company intends to do that but reiterated its commitment to expanding its smartphone lineup even further. The company has struggled massively in recent years, even earning only a third of the expected operating profit that analysts had projected for the fourth quarter, ending on December 31st of 2019. LG said it expected to generate 98.6 billion won, while market analysts had previously pegged the company for a much higher figure of 270 billion won. Kwon didn’t really dwell on the company’s undercutting of expected operating profitability. Earlier in the year, LG had even moved its smartphone production from South Korea to Vietnam, in a bid to cut costs.
LGE Reports Preliminary Q419 Earnings Results of KRW 16.1t and Operating Profit Of KRW 98.6b
January 27, 2020
LG Electronics announced preliminary earnings results for the fourth quarter and full-year of 2019 with consolidated revenues of KRW 16.1 trillion in the fourth quarter of 2019 and an operating profit of KRW 98.6 billion. Total annual sales reached almost KRW 62.3 trillion, the highest annual sales in LG history, surpassing 60 trillion won for the third year in a row, with operating profit of KRW 2.4 trillion expected to be 10 percent lower than the previous year.
LG’s smartphone division has been hemorrhaging money seemingly no matter what the company tries to do. Gimmick after gimmick hasn’t saved them, and even launching a software update center in order to roll out frequent updates proved fruitless. Speaking at CES, the company’s new CEO, Kwon Bong-seok, said “LG Electronics mobile business is going to be profitable by 2021. I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers.” This isn’t the first time that the company has attempted to rethink their strategy when it comes to mobile.
Kwon never elaborated as to how the company intends to do that but reiterated its commitment to expanding its smartphone lineup even further. The company has struggled massively in recent years, even earning only a third of the expected operating profit that analysts had projected for the fourth quarter, ending on December 31st of 2019. LG said it expected to generate 98.6 billion won, while market analysts had previously pegged the company for a much higher figure of 270 billion won. Kwon didn’t really dwell on the company’s undercutting of expected operating profitability. Earlier in the year, LG had even moved its smartphone production from South Korea to Vietnam, in a bid to cut costs.
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