Fri Jan 23, 2009 9:19 am
LG Electronics reported its first net loss in seven quarters as the global economic slump hit prices and demand for consumer electronics.
The company painted a pessimistic outlook for 2009, its sales should decline and profits worsen this year due to slumping demand and increasing competition.
LG, now the world's No.3 handset maker, lost $487.2 million in the three months ended Dec. 31. It recorded a net profit of $446.7 billion a year earlier.
A bright spot for the company was an 8 percent increase in shipments of mobile phones to 25.7 million. That pushed its 2008 handset sales to a record 100.7 million, up from 80.5 million in 2007.
The company said the global mobile market would shrink this year though it aimed to maintain sales growth from the business and increase market share.
Last week, Sony Ericsson reported a larger-than-expected quarterly loss and said it would cut costs in light of weakening demand. Nokia profits plummeted 69 percent amid the murky 2009 outlook.
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