SEOUL, KOREA - LG Electronics is set to reorganize its TV business. LG Group has launched a wholesale diagnosis of LG Electronics' TV business and recently changed its head. The move came after the electronic unit failed to narrow the market share gap with Samsung Electronics in the TV area. Another factor was its deteriorating profitability in the business.The operating profit-to-sales ratio of LG Electronics' HE division fell to 0.3 percent in the fourth quarter of 2012 from 0.8 percent in the third, 5.7 percent in the second and 3.2 percent in the first.
Due to the weakening profitability of its flagship TV business, LG Electronics suffered a 26.6-percent decline in operating profits to 107.2 billion won in the fourth quarter from the previous quarter.
In contrast, Samsung Electronics' CE division, which includes TV business, saw its operating profit-to-sales ratio rise to 5.3 percent in the fourth quarter from 3.4 percent in the third. In terms of global market share, LG Electronics is lagging far behind Samsung Electronics. In terms of sales amount, LG falls behind Samsung by more than 10 percentage points.
enews@hankyung.com
*Article provided by The Korea Economic Daily
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