LG Electronics, a leading South Korean consumer-electronics company, faced a setback in the fourth quarter of 2022. The company reported a net loss of 76.40 billion won ($57.3 million), marking a change from its previous profitable streak.
The decline in profitability can be attributed to a delayed recovery in demand for televisions and home appliances. These factors led to the company missing market expectations for remaining profitable in the final quarter of the year.
Although LG Electronics experienced a net loss in Q4, its revenue for the quarter saw a 5.7% increase from the previous year, amounting to KRW23.104 trillion. Additionally, the operating profit for the company more than quadrupled to KRW313.10 billion, which aligned with the company’s preliminary forecasts.
Looking at the overall performance for the year, LG Electronics recorded a slight increase in revenue by 0.9% to a record KRW84.228 trillion. However, its operating profit dipped slightly by 0.1% to KRW3.549 trillion, and net profit suffered a noticeable decline of 38% to KRW1.151 trillion.
Despite these challenges, LG Electronics remains optimistic about its home-appliance and vehicle-component segments. These areas have shown consistent growth, even in the face of difficult business conditions. In fact, the company highlighted that its fast-growing vehicle-component unit exceeded KRW10 trillion in revenue for the first time in 2023.
Considering the circumstances, LG Electronics is determined to navigate through the obstacles and continue its growth trajectory in various sectors.