January 09, 2019 11:11
LG has suffered a huge fall in its quarterly operating profit as the global IT market has slowed down.
The electronics giant on Tuesday said that its operating profit plunged 79.5 percent on-year to W75.3 billion in the fourth quarter of last year (US$1=W1,126). It was far below the market's expectation of W260 billion.
Sales also fell 7 percent to W15.77 trillion over the same period. It was LG's first quarterly operating profit below W100 billion since it posted a loss of W3.5 billion in the fourth quarter of 2016.
"LG's weak earnings were largely due to continued losses in the smartphone business, while its marketing spending increased amid stiff competition among TV makers during Black Friday sale events," an industry insider said.
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