LG Electronics Q4 profit collapses on slumping demand, rising cost

LG Electronics said its operating profit for the fourth quarter nosedived more than 90 percent on a drop in demand for home appliances and rising promotion cost amid global macroeconomic woes.

The tech firm said operating income for the three months ending in December fell 90.7 percent on-year to 69.3 billion won (US$56.2 million), 74.8 percent lower than the average estimate by Yonhap Infomax, the financial data firm of Yonhap News Agency.

It reported a net loss of 212.4 billion won for the October-December period, turning from a profit of 21.3 billion won a year earlier.

Sales increased 5.2 percent to 21.85 trillion won.

The company said pandemic-driven pent-up demand for home appliances, including TVs, has lost steam,