Seoul, Jan 9 (IANS) LG Electronics on Friday said it turned to an operating loss from a year earlier in the fourth quarter, amid an overall contraction in demand caused by US tariffs.
Operating loss in the October-December period came to 109.4 billion won (US$75.2 million), shifting from a profit of 135.4 billion won a year earlier, the company said in a regulatory filing.
The performance missed Yonhap Infomax’s projection of an operating profit of 20.5 billion won, reports Yonhap news agency.
Revenue increased 4.8 per cent on-year to 23.85 trillion won in the fourth quarter. The data for net income was not available.
For all of 2025, LG Electronics estimated its operating profit at 2.47 trillion won, down 27.5 per cent from a year earlier.
Annual revenue increased 1.7 per cent to a fresh high of 89.2 trillion won.
The data for net profit was unavailable. The company will release its final earnings report later this month.
“A delay in the recovery of demand for display products and increased marketing costs amid heightened competition in the market weighed on performance,” LG Electronics said in a release. “In the second half, the company carried out a voluntary retirement program,” the company said, noting the move is expected to ease the burden of fixed costs in the future.
LG Electronics said that while the U.S. tariff burden will continue this year, the company will make efforts to offset such hurdles by improving its operational efficiency.
While the company has not yet revealed detailed performance figures for each division, LG Electronics said its display businesses are estimated to have posted a loss for 2025, due to weak overall demand.
The company’s crucial home appliance business is estimated to have posted record sales by maintaining solid leadership in the premium segment.
“This year, we plan to secure growth momentum by focusing investment on the built-in segment, along with business-to-business areas, including parts solutions covering motors and compressors,” it added.
Its vehicle solution business is expected to set new records in terms of both sales and operating profit, it added.
—IANS
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