Amongst LG’s financial results for Q4 2016, there has been some good news and some bad. On the whole, LG Electronics Inc. is doing just fine, with an operating profit of more than $1.16 billion USD, a 12% increase on 2015 due to strong performance in home appliances, air solutions and home entertainment.
The news isn’t all good though. While their overall year result was positive, their fourth quarter sales weren’t, with the business reporting a $296 million AUD net loss, on the back of losses in the mobile communications and vehicle components businesses.
Taking a closer look at the LG Mobile Communications Company, the business unit reported revenues of $3.3 billion AUD, which represents an increase of over 15% from Q3 2016. However, revenue doesn’t necessarily mean profit, and that seems to be the case here: LG attributes poor profitability to “weak sales of the G5 smartphone and higher marketing investments.” Even the much more successful V20 and its strong sales couldn’t address the impact of the G5’s poor sales… sadly.
LG Mobile remains optimistic though, stating: “Introductions of the next G Series phone and mass-tier devices in the second quarter following Mobile World Congress are expected to help greatly improve the LG Mobile Communications Company’s market position in 2017.”
From what we’ve seen of the LG G6, they have every reason to be optimistic, with it shaping to be one of the biggest phone launches at MWC 2017, and indeed, in the entire first quarter of 2017.
‘Even the much more successful V20 and its strong sales’….. Any source for this statement?
LGs financials. Linked in the first sentence of the story.