LG Electronics posts double-digit growth in 2016 profit despite smartphone loss

LG Electronics, South Korean tech behemoth, posted a double-digit growth in its 2016 profit despite a massive loss in smartphone business that was offset by strong revenue in consumer electronics and TVs.

Operating profit was 1.34 trillion won (1.15 billion U.S. dollars) in 2016, up 12.2 percent from the previous year, a regulatory filing showed on Wednesday. Revenue fell 2.0 percent to 55.37 trillion won (47.5 billion U.S. dollars) last year.

The mobile phone business recorded a whopping 1.26 trillion-won (1 billion U.S. dollars) loss last year, but the divisions, which produce TVs and consumer electronics, posted record earnings, helping the company's overall profit grow at a double-digit rate.

Operating profit in the home appliance-making division hit the company's highest of 1.33 trillion won (1.14 billion U.S. dollars) last year, while the TV division also posted its largest of 1.24 trillion won (1.06 billion U.S. dollars) in operating profit.

In the October-December quarter, LG posted an operating loss of 35.2 billion won (30 million U.S. dollars), the first turn into the red in six years. Revenue rose 1.5 percent to 14.78 trillion won (12.7 billion U.S. dollars) in the quarter.

The loss came as the mobile phone division logged an operating loss of 467 billion won (400 million U.S. dollars) on revenue of 2.9 trillion won (2.5 billion U.S. dollars), which reduced 20.9 percent from a year earlier.

The smartphone unit's loss continued for seven straight quarters from the second quarter of 2015.

The consumer electronics division posted revenue of 4.04 trillion won (3.5 billion U.S. dollars) in the fourth quarter, up 5.6 percent from a year earlier. The TV-making unit's revenue rose 1.1 percent to 4.79 trillion won (4.1 billion U.S. dollars). Enditem