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Increased TV sales, but LG's latest results disappoint

TV sales up - but LG had a torrid quarter
TV sales up - but LG had a torrid quarter

Strong sales of televisions spared some of LG's blushes, but the Korean giant's latest financial results do not make happy reading.

LG posted increased consolidated revenues of KRW 14.7 million (c£8.3bn), but a net loss of KRW 256.4 billion (c£143 million) in the last quarter of 2010, a record quarterly loss.

"Overall operating profit fell but losses at the company's mobile division also declined and a reduction in inventory resulted in improved cash flow," explained LG's statement.

TV sales

"LG Home Entertainment Company sales increased 15.8 percent in KRW quarter-over-quarter with record-high quarterly flat panel TV sales due to strong seasonality and product leadership in developed markets," added LG

"The company shipped 8.7 million flat panel TVs, reflecting a 33.0 percent increase from the same period the previous year.

"However, due to ASP decline as a result of intensified competition in the TV industry, earnings declined compared to the third quarter and posted an operating loss in this quarter."

LG has indicated that it will look to smartphones and tablets to help it return to profitability in 2011, but admitted that the it had suffered a 'soft' performance in the mobile phones sector in the quarter.