SEOUL - LG Electronics Inc (KS:066570). reported a mixed financial performance for the fourth quarter of 2024, with a slight increase in sales but a significant decline in profitability, according to a press release issued today. The South Korean electronics giant disclosed sales of 22,761.5 billion Korean won for the quarter, a marginal increase from the 22,733.6 billion won reported in the same period the previous year.
However, the company's gross profit rose to 4,952.0 billion won from 4,734.7 billion won year-over-year, indicating improved efficiency in its operations. Despite this, LG Electronics experienced a sharp fall in operating income, which plummeted to 135.4 billion won, down from 312.5 billion won in the fourth quarter of 2023.
The closure of the battery pack business in the third quarter of 2024 had a significant impact on the company's financials, with related gains and losses reflected in the discontinued operations. This contributed to a net loss before tax of 1,095.4 billion won, a stark contrast to the slight loss of 88.6 billion won in the prior year's quarter. The net loss for the quarter stood at 713.7 billion won, compared to a loss of 76.4 billion won in the same period a year earlier.
LG Electronics highlighted that the reported figures were prepared in accordance with International Financial Reporting Standards (IFRS) on a consolidated basis and have not yet been reviewed by outside auditors. Therefore, these preliminary results are subject to change upon final audit.
The information from the press release statement reflects LG Electronics' financial situation as it navigates the competitive electronics market and adjusts its business portfolio. The company's performance in the fourth quarter underscores the challenges it faces as it strives to maintain its position in the industry amidst a rapidly changing technological landscape.
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