LG Electronics falls into red in fourth quarter

SEOUL: South Korea's LG Electronics Wednesday posted a fourth quarter net loss as its handset business was hit by popular phones like the BlackBerry and Apple iPhone, as well as poor demand for flat-screen TVs.

The firm posted a 256.4 billion ($229 million) consolidated net loss, including overseas operations, for the three months ended December 31, a sharp reverse from a 361.9 billion net profit a year earlier.  It was the first quarterly net loss in seven quarters for the company, the world's third-largest handset maker in terms of shipments after Nokia and Samsung Electronics.

LG's handset business took a direct hit from smartphone offerings from global rivals such as Samsung, Apple and Research In Motion, the maker of BlackBerrys.However, analysts expressed guarded optimism that LG's earnings may recover from the current quarter, helped by new offerings of smartphones and TV sets as well as seasonal demand for home appliance and air-conditioning units.For the fourth quarter, LG reported a 245.7 billion won operating loss, reversing a 113.8 billion operating profit a year earlier.