Breaking News: LG Electronics Posts 109 Billion Won Operating Loss in Q4, Turns to Deficit

LG Electronics (066570.KS) swung to a loss in the fourth quarter of last year due to slowing demand for finished products including home appliances and TVs, as well as increased one-time costs.

LG Electronics reported consolidated revenue of 23.8522 trillion won and an operating loss of 109 billion won for the fourth quarter of last year, the company said in a regulatory filing Thursday. Revenue rose 4.8% year-on-year, but operating profit turned to a loss. This marks the first quarterly operating loss for LG Electronics in nine years since the fourth quarter of 2016.

On an annual basis, the company posted revenue of 89.2009 trillion won and operating profit of 2.4784 trillion won, up 1.7% and down 27.5% year-on-year respectively. Company-wide revenue set a record high for the second consecutive year. The home appliance and vehicle component solutions businesses contributed to the record revenue by achieving growth despite unfavorable conditions including tariff burdens and the electric vehicle chasm.

However, operating profit declined due to delayed demand recovery for display-based products, intensified competition, and non-recurring costs from a company-wide voluntary retirement program.