LG released their fourth quarter and 2015 full year financial results today showing the LG Mobile Communications Company portion of the manufacturing conglomerate had a solid year. According to LG, the company shipped a total of 59.7 million smartphones in 2015, which was a slight increase from 59.1 million units shipped in 2014. LG specifically noted that sales in North America had improved to help with the results for the division.
For the fourth quarter of 2015, LG shipped 15.3 million smartphones, leading to sales of KRW 3.78 trillion ($3.26 billion USD). That was a 12 percent increase in sales compared to the previous quarter. In a world where the smartphone market has been softening, the fourth quarter results were unchanged when compared to the same quarter in 2014, so that is effectively a win for the company. LG says they anticipate 2016 will be even tougher thanks to competitor devices and price pressures. To combat this, LG plans to introduce two flagship smartphones during 2016.
LG also reported that their home entertainment division had a solid fourth quarter in 2015 with revenues increasing 11 percent compared to the third quarter. LG says this growth was due to improved sales of OLED and UHD televisions. Despite the upward trend within the year, revenues of KRW 4.74 trillion ($4.09 billion USD) were down compared to 2014 as the global TV market softens and LG was buffeted by unfavorable foreign currency exchange rates. LG says they do anticipate a favorable market in 2016 for their OLED TVs and new Super 4K Ultra HD televisions. The company also says they will have their first ever Super Bowl commercial this year.
Overall, LG’s fourth quarter operating profit in 2015 was 27 percent higher than in 2014 thanks in large part to the home appliances division, although home entertainment was a solid contributor as well. Despite the improved profits, sales revenue was down 4.7 percent across all businesses compared to 2014’s fourth quarter. Likewise, full year revenues were down for 2015 compared to 2014 as was operating income.
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