Weak television sales due to the Russia-Ukraine war and the surge in raw materials prices have hit LG Electronics, resulting in the downtrend.
LG Electronics posted a weak estimate for its fourth-quarter operating earnings at $51.6 million (65.5 billion won), down 91.2% from a year earlier.
For 2022, the South Korean home appliances maker posted an estimated $2.84 billion (3.54 trillion won) in operating profit, down 12.6% from a year earlier.
The revenue increased 5.2% annually to $2.28 billion (21.85 trillion won), marking a quarterly high, according to the earnings guidance released by the company. The company is yet to release the data for net income. The company’s annual sales have crossed $64.3 billion (80 trillion won) for the first time, expanding by 12.9% on-year to a record $67.057 billion (83.46 trillion won).
LG Electronics is yet to release the detailed terms of its fourth-quarter earnings, but reports suggest that the company’s net income has been hit by the surge in raw material prices, rising marketing costs and the weakening Korean currency.
The global television retailer’s television sales have been dampened by the Russia-Ukraine war. IANS reported that its electric vehicle components business would continue to remain profitable amid a growing demand due to the gradual easing of the auto chip shortage and a subsequent rise in auto production.
LG Corporation, formerly Lucky-Goldstar from 1983 to 1995, is a South Korean multinational conglomerate founded by Koo In-hwoi and managed by successive generations of his family. The company is one of the world’s largest TV manufacturers after Samsung Electronics. It has 128 operations worldwide and employs over 83,000 people.
