LG Electronics Inc, South Korea's second-largest electronics maker, posted a net loss in the fourth quarter as the popularity of flat-panel screens hurt its display tube-making venture and the company paid year-end bonuses.
LG had a net loss of 179 billion won (US$152 million). A Bloomberg News survey of five analysts had forecast an average loss of 25 billion won. The stock fell 2.2 percent to close at 39, 500 won.
The company booked 130 billion won in losses from LG.Philips Display Co, a venture with Koninklijke (Royal) Philips Electronics NV that's the world's largest producer of glass tube- based displays. LG also paid 145 billion won in employee bonuses.
"Investors were concerned that higher bonuses would hurt LG's earnings," said Kim Hyung Chan, who helps manage about 1.3 trillion won at KTB Asset Management Co.
LG had net income of 498 billion won on sales of 18.6 trillion won last year. LG said it expects sales to shrink this year to as little as 18 trillion won.
It expects to spend 770 billion won on new plants and equipment, and 980 billion won on research and development.
For the fourth quarter of last year, LG sales were 4.6 trillion won.
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