LG Shares Plunge To 12yr Low
In a note to clients, IBK Securities said LG’s stock price has hit its lowest since June 16, 2003, and the cause is the firm’s “miserable” financials. On Monday, the shares closed at 44,900 won ($39.71).
Over four years from 2011, LG has earned 4.67 trillion won (US$4.13 billion) in operating profits. But due to losses and taxes and other costs, net profit was only 200 billion won ($176 million).
IBK said LG’s home entertainment business – which mainly makes televisions – continues to experience revenue decline, while its mobile business has also been hit by slow growth and intense competition.