For the three months ending December, the Seoul-based conglomerate posted net income of KRW 48bn ($51m), down from KRW 312bn ($332m) in the year ago quarter. Sales were down 11% at KRW 5.52 trillion ($5.88bn) from KRW 6.18 trillion ($6.59bn) a year ago.
LG Electronics makes everything from washing machines, flat panel LCDs and televisions, through to mobile phones, where it is currently the fifth largest global handset maker. It is locked in intense competition with its domestic rival, Samsung Electronics Co Ltd, which recently reported net income down 8.2% at KRW 2.35 trillion ($2.45bn), while sales rose a modest 1.1% to KRW 15.69 trillion ($16.69bn).
Like Samsung, LG Electronics has been hit hard by price declines in flat panel screens despite strong demand for televisions. The price declines caused sales at LG’s digital display business to fall 14% to KRW 1.2 trillion ($1.27bn).
LG Philips LCD Ltd, its flat panel joint venture with Philips, recently posted its third straight quarterly net loss of KRW 174bn ($186m), on sales up 3% at KRW 3.065bn ($3.27bn). The flat-panel maker also warned that panel prices would fall sharply in 2007.
Overall for the full year 2006, LG reported net profit down 70% to KRW 212bn ($226m) from KRW 703bn ($749m) in 2005. Sales fell 3% to KRW 23.2tr ($24.68bn) from KRW 23.7tr ($25.32bn) the previous year.
