According to Bloomberg, LG Electronics Inc. reported fourth-quarter profit tumbled 85 percent as mounting competition forced the company to cut prices of mobile phones and TV screens.
Net income fell to 48.2 billion won (approx. U.S. $51.4 million), from 312.2 billion won (approx. $333.1 million) a year earlier, Seoul-based LG said in a statement. Sales fell 11 percent to 5.52 trillion won (approx. $5.9 billion), Bloomberg reported.
The results cap a second year of profit declines for LG Electronics, whose shares in 2006 had their first annual drop in four years. Incoming Chief Executive Officer Nam Yong faces increased competition this year from Motorola Inc. and Samsung Electronics Co., which also posted lower profits this month.
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