comscore LG smartphone shipments rise 54 percent in Q4 2013, buoyed by the G2 and Nexus 5
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LG smartphone shipments rise 54 percent in Q4 2013, buoyed by the G2 and Nexus 5

LG today announced financial results for the fourth quarter of 2013 as well as the whole of last year. Overall, the South Korean company posted revenues of $53.10 billion and net profits of $203.6

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LG today announced financial results for the fourth quarter of 2013 as well as the whole of last year. Overall, the South Korean company posted revenues of $53.10 billion and net profits of $203.65 million, while its mobile division too earned $3.38 billion in profits largely due to the sales of the G2 and Nexus 5. Also Read - Top gaming smartphones under Rs 30,000: Mi 11X, Realme X7 Max and more

The mobile division’s annual revenues were up by 29 percent year-on-year posting $11.85 billion, while the fourth-quarter profits were up sequentially by 18 percent at $3.38 billion. LG also revealed that shipments of its devices in the quarter were up by 54 percent from last year, clocking 13.2 million units. Also Read - iPhone 14 details leak even before the launch of iPhone 13, to bring this crucial feature

Though the overall picture was positive, the fourth quarter results were a bit of a mixed bag. LG Electronics posted revenues of $14.03 billion and operating profits of $223.89 million, but had to face a loss of $60.21 million in the same period due to “high costs” involved in advertising its products and “intensified price competition.”

The press release follows:

LG ANNOUNCES IMPROVED FOURTH-QUARTER AND FULL-YEAR 2013 FINANCIAL RESULTS

Operating Income Increases for all Business Units Year-on-Year

SEOUL, Jan. 27, 2014 ― LG Electronics Inc. (LG) today announced consolidated revenues of KRW 58.14 trillion (USD 53.10 billion) and net profit of KRW 222.70 billion (USD 203.65 million) for full-year 2013, marking an improvement over 2012 results. Operating profits increased modestly in 2013 to KRW 1.28 trillion (USD 1.17 billion) from KRW 1.22 trillion (USD 1.08 billion) in full-year 2012.

Fourth-quarter 2013 consolidated revenues were KRW 14.92 trillion (USD 14.03 billion) with an operating profit of KRW 238.1 billion (USD 223.89 million). Unaudited consolidated financial results for the fourth quarter ending Dec. 31, 2013 showed a net loss of KRW 63.5 billion (USD 60.21 million) primarily due to higher non-operating expense as a result of FX movements.

The LG Home Entertainment Company reported an 18 percent revenue increase quarter-on-quarter to KRW 5.93 trillion (USD 5.58 billion) and full-year operating profit of KRW 404.80 billion (USD 369.86 million). Despite higher demand for LCD TVs in North America, Asia and CIS countries, full-year revenue declined by 5 percent from the previous year. Operating profit margins increased each quarter in 2013 due to a stronger product mix that included more high-end models such as OLED TVs and Ultra HDTVs, which are expected to see strengthening demand in 2014.

The LG Mobile Communications Company reported a 29 percent increase in annual revenues to KRW 12.97 trillion (USD 11.85 billion) year-on-year and an 18 percent increase in fourth-quarter revenues to 3.59 trillion (USD 3.38 billion) quarter-on-quarter with help from stronger LTE smartphone sales such as G2 and Nexus 5. Smartphone shipments of 13.2 million units represented an increase of 54 percent from the previous year. The positive impact of improved product mix was offset by higher marketing investments to strengthen LG’s brand equity and intensified price competition.

The LG Home Appliance Company posted sales of KRW 2.84 trillion (USD 2.67 billion) in the fourth quarter, down 4 percent from the same period the previous year but full-year revenues increased by 5 percent from 2012. Stronger sales in North America and China were offset by slower growth in developing markets such as India, Central and South America. Profitability in the fourth quarter of 2013 improved year-on-year to KRW 83.40 billion (USD 78.08 million) as a result of improved cost structure and stronger sales of products with high profitability. In 2014, demand for LG appliances is expected to increase in developed markets such as North America and Europe as economic conditions continue to improve.

The LG Air Conditioning & Energy Solutions Company reported sales of KRW 719.70 billion (USD 677.33 million) in the fourth quarter of 2013, an increase of 8 percent from the same period in 2012, primarily due to the growth of commercial air-conditioner system sales in overseas markets. For full-year 2013, the company reported revenues of KRW 4.64 trillion (USD 4.24 billion), 8 percent higher year-on-year, and operating profit of KRW 279.50 billion (USD 255.71 million). Demand for commercial air conditioners with high-energy efficiency and inverter-type residential units are expected to help drive further profitability improvements for LG in 2014.

2014 Business Direction

For 2014, LG Electronics is targeting a revenue goal of KRW 62.30 trillion with plans to spend KRW 3 trillion in capital expenditures.

2013 4Q Exchange Rates Explained

All information regarding management performance and financial results of LG Electronics during the fourth quarter of 2013 has been prepared on a consolidated basis in accordance with International Financial Reporting Standards (IFRS). Starting from January 1, 2013, LG Electronics has accounted LG Innotek as a consolidated subsidiary pursuant to the enactment of Korea-International Financial Reporting Standards (K-IFRS) 1001, “Consolidated Financial Statements.” The comparative consolidated financial data are restated accordingly. Amounts in Korean won (KRW) are converted into U.S. dollars (USD) at the average rate of the three month period in each corresponding quarter: KRW 1,063 per USD (2013 4Q) and KRW 1,091 per USD (2012 4Q). Average rate of the twelve-month period in 2013 was KRW 1,095 per USD.

Earnings Conference and Conference Call

LG Electronics will hold a Korean-language earnings news conference on Jan. 27, 2014 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow on Jan. 27, 2014 at 21:00 Korea Standard Time (12:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at approximately 13:30 on Jan. 27, 2014. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142720# when prompted.

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  • Published Date: January 27, 2014 1:32 PM IST



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