LG Electronics saw its operating profit for 2022 drop year-on-year due to the lowered demand for consumer electronics caused by the global economic downturn.
The South Korean electronics maker said on Friday that it recorded 3.551 trillion won in operating profit in 2022, a drop of 12.5% from a year ago.
The global economic downturn increased costs for South Korean tech giants Samsung and LG last year while demand for consumer electronics that was high during the pandemic nosedived.
The operating profit drop for LG was especially noticeable during the fourth quarter, dipping by 90.7% year-on-year to 69.3 billion won.
While the general demand for consumer electronics fell, those for premium products sustained through 2022. LG saw revenue increase 12.9% year-on-year and recorded 83.46 trillion won in revenue, its highest annual revenue figure to date.
The South Korean electronics maker said this revenue growth was driven by strong demand for premium home appliances and automotive components. Its vehicle component business unit also recorded its first profit in 2022, LG said.
However, revenue and operating profit from its TV business fell in 2022 compared to 2021 due to the lowered demand. Post-pandemic demand for PCs and monitors also fell during the year, the company explained.
Subsidiary LG Display on the same day also announced an operating loss of 875.7 billion won for the fourth quarter from this weak demand for display panels.