LG Electronics has announced losses of $428.96 million (468 billion Korean won) for the fourth quarter of 2012 fueled by a price-fixing fine from the European Union and increased TV industry competition, The Next Web reports.
The firm posted consolidated revenues of $12.37 billion (13.50 trillion won) with operating profits of $98.08 million (107 billion won) as its mobile business saw year-high sales, shipping 7.6 million smartphones during the period.
The EU fined the Korean firm and six other electronics companies $1.92 billion after ruling that they ran cartels to restrict the pricing of CRT TVs and computer monitors between 1996 and 2006. LG appealed the ruling but the weight of the punishment and challenges for its TV business knocked the company off track.
LGE’s mobile business recorded year-long high revenues of $2.58 billion (2.81 trillion won), up 15 percent on the previous quarter. LG says that sales of its ‘premium 4G devices’ — such as the Optimus G — grew during the fourth quarter and it is planning to launch follow devices to capitalize on the growth of 4G in Europe and emerging markets.
The company’s mobile business notched a 23 percent quarter-on-quarter increase in smartphones shipments, which hit 7.6 million over the three-month period. Overall mobile handset shipments — for feature phones and smartphones — rose 7 percent on Q3 to reach 15.4 million units.
The home entertainment division recorded record sales of flat-panel TVs (9.3 million units) in Q4, which saw a 17.4 percent revenue increase quarter-on-quarter. However, profitability during the quarter and over 2012 as a whole declined due to increased competition and lower average selling prices. LGE says it will continue to “aggressively market” 3D and Smart TVs and it is also focusing on its Ultra HD and OLED TVs.
The company’s home appliance and air conditioning business posted near-flat revenues for the quarter.
The firm’s year long financials saw overall revenues decline 6 percent on 2011 to $45.22 billion (50.96 trillion won), but net profit rose to $80.75 million (91 billion won), from a previous net loss of $391 million (433 billion won).
