Try as it may, 2010 is a year that LG Electronics will not soon forget. The struggling electronics giant on Wednesday reported its fourth quarter earnings and put the cap on its worst year on record. The company posted a fourth-quarter net loss of 256.4 trillion won compared to profits of 361.9 billion won in the fourth quarter of 2009. Operating profit for the full year was down 93% to 176.4 billion won. Revenue from cell phones dropped 15% as LG’s mobile division posted a 274.1 billion won loss. Shipments were also down 10% to 30.6 million units, pushing LG into the No. 5 spot globally behind RIM. The company will look to new high-end smartphones like the Optimus 2X, Optimus Black and Optimus 3D as it attempts to reverse its declining mobile trend. LG remains the No. 2 TV company globally, as sales in its home entertainment division increased 15.8% compared to the third quarter of this year. Because competition forced LG to drop the average selling price on its television sets, however, the company’s home entertainment business still posted an operating loss in the quarter. Hit the break for LG’s full press release. More →
File this little guy under gadgets we need ASAP. VUDU has been tearing it up lately as the company wisely broadens its horizons beyond dedicated set top boxes. The HD on-demand content provider recently announced partnerships that bring its service to various LG and Mitsubishi flat-panel televisions, and now VUDU is taking things to a new range of products: LG Blu-ray players. It certainly makes sense — if you’re going to add an on-demand HD streaming service to a line of home theater components, why not make them Blu-ray players? The first LG model that will be graced with VUDU service is the BD390, which is available now with an MSRP of $399. VUDU will go live on the player via a free software update toward the end of the month, though CEDIA attendees will be able to get a preview of the VUDU-enabled player this week at the show. If you have a High Def addiction and you’ve given up fighting it long ago, the BD390 is definitely the 1080p fix you’ve been looking for. Hit the jump for the full release.
Well it looks like LG Electronics came through in a big way this past quarter as the company reports a very, very solid performance. Maybe its bid to take over the world isn’t so crazy after all. Let’s start with a couple of records — sales rang up at $11.229 billion, a remarkable 13.8 percent jump YoY, and operating profit came in at $878 million. The company also reported a 7.8 percent margin, up 1.1 percent YoY, while margin for its mobile business exploded to 11 percent from 6.7 percent in the previous quarter. On that note, let’s look briefly at LG’s two biggest businesses — discounting a typo that suggests its Business Solutions sales came in at $787 billion (!). Mobile Communications recorded $7.981 billion in sales, an insane YoY jump of 25.8 percent, and operating profit came in at $422 million with a margin of 10.6 percent. LG’s number two was Home Appliances, which did $1.812 billion in sales. Also noteworthy is the fact that LCD TV shipments increased 45 percent YoY to 4.28 million units as LG’s Home Entertainment business recorded a profit of $174 million on $3.492 billion in sales. As far as projections, LG’s sales are expected to rise about 10 percent this quarter but profits are expected to remain relatively flat — not the most exciting outlook but it leaves plenty of room for a pleasant surprise when LG reports Q3.