Market Intelligence

LG Electronics' Q4 profit plunges as rivals crowd TV business

Reuters

SEOUL, Jan 31 () - South Korea'sLG Electronics Inc posted its slowest quarterly profit growth in two years on Thursday citing higher marketing costs and tougher competition in the television business.

Fourth-quarter operating profit plummeted 80 percent from a year earlier to 76 billion won ($68.5 million), in line with its earlier guidance, the company said. Revenue fell 7 percent to 15.8 trillion won, matching the company's estimate.

Widening losses in the company's struggling mobile business also dragged down profit, analysts said.

Competition in the high-end television set market, particularly from Chinese rivals, as well as global economic headwinds are clouding the outlook for LG Electronics, analysts said.

LG's share price fell 1.5 percent in a flat broader market on Thursday after the results were released.

($1 = 1,109.9000 won)


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Reuters

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