LG Electronics Posts First Loss in Seven Quarters on Smartphones
Baku, January 26 (AZERTAC). LG Electronics Inc., the world`s third-largest maker of mobile phones, reported its first loss in seven quarters after the company lagged behind Apple Inc. and Research In Motion Ltd. in the surging smartphone market.
The fourth-quarter net loss was 256.4 billion won ($229 million), compared with profit of 361.9 billion won a year earlier, Seoul-based LG said in a regulatory filing today. Revenue rose 1.8 percent to 14.7 trillion won.
LG said it aims to revive earnings by expanding its range of Optimus smartphones after the main mobile-phone division posted a third straight quarterly loss. The company plans 4.8 trillion won in capital expenditures and research spending to help boost revenue 5.8 percent to 59 trillion won this year.
LG`s mobile division posted a 274.1 billion won operating loss, compared with the 321 billion won loss projected based on the median estimate in a Bloomberg News survey of six analysts.
Revenue from handsets fell 15 percent and the number of phones shipped declined 10 percent to 30.6 million, LG said. RIM overtook LG as the fourth-largest handset maker in terms of revenue last year, according to estimates at Bank of America Corp.`s Merrill Lynch.
The company has sought to make inroads in the smartphone market with its line of Optimus phones powered by Google Inc.`s Android operating system. In November, LG said the Optimus One became the company`s first smartphone to sell more than 1 million units in about 40 days after its debut.
LG`s full-year net income was 1.28 trillion won on a consolidated basis, compared with profit of 2.35 trillion won. Operating profit dropped 93 percent to 176.5 billion won, while sales climbed to 55.75 trillion won from 55.49 trillion won. LG agreed to pay a dividend of 200 won for each common share and 250 won per preferred stock, it said.
LG said it plans to invest 2.3 trillion won capital expenditure and 2.5 trillion won on research and development, up from a combined 3.6 trillion won in 2009.
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