LG Electronics’ 2022 operating profit fell year-on-year as demand for consumer electronics fell due to the global economic slowdown.
The South Korean electronics maker said on Friday that it recorded 3.551 trillion won in operating profit in 2022, down 12.5% from a year ago.
The global economic downturn increased costs for South Korean tech giants Samsung and LG last year while the demand for consumer electronics is high during the pandemic outbreak.
LG’s drop in operating profit was especially noticeable in the fourth quarter, which fell 90.7 percent year-on-year to 69.3 billion won.
While overall demand for consumer electronics has declined, demand for premium products will remain strong through 2022. LG’s revenue increased 12.9% year-on-year and recorded sales of 83.46 trillion won, the highest annual sales figure to date.
The South Korean electronics maker said the sales growth was driven by strong demand for high-end home appliances and auto components. Its vehicle components business also recorded its first profit in 2022, LG said.
However, revenue and operating profit from the TV business in 2022 decreased compared to 2021 due to reduced demand. The company explained that post-pandemic demand for PCs and monitors also declined during the year.
Subsidiary LG Display on the same day also announced an operating loss of 875.7 billion won in the fourth quarter due to this weak demand for display panels.
