LG posts big loss in Q4 2010


South Korean electronics manufacturer’s handset sales down 25 per cent but profit expected to return this year

LG has posted a net loss of $230 million for the final quarter of 2010 following the fall of handset sales by 15.2 per cent.

Total handset sales for 2010 fell by almost 25 per cent compared with year on year figures for 2009.

LG has struggled to compete with Apple’s dominance of the smartphone market as well as the emergence of Samsung as a major player in the market with its Galaxy range.

Despite the announcement LG chief financial officer Jung Do-hyun said he expected the company to return to profit in 2011.

“Profitability will improve significantly in the first quarter and we will be able to return to profit,” D-hyun told analysts.

However he said handset sales would not be a major contributor to any such early year growth.

“Earnings from the handset division will also improve, but are likely to remain in the red in the first quarter.”