LG Electronics returns to profit in Q3

LG Electronics reported a small improvement in results at its mobile phone business in the third quarter, restoring the activities to an operating profit of KRW 21 billion. That compares to losses of KRW 140 billion a year earlier and KRW 59 billion in the second quarter. Sales from mobile handsets were still down 9.9 percent year-on-year to KRW 2.423 trillion, but improved 6.0 percent versus Q2. Handset shipments rose 9 percent from the previous quarter to around 14 million units. 

Growth was led by LTE sales in the US, Japan and Korea and the new L series of 3G phones; the higher end products also helped increase margins. LG said new handsets such as the Optimus G and Vu:2, recently released in Korea, should lay the basis for improved sales in Q4 as well. The company said it plans an aggressive marketing campaign for the phones in the important year-end sales season, amid tough competition from rivals also launching flagship phones. 

Overall, LG's quarterly sales fell 4.0 percent from a year earlier to KRW 12.38 trillion, due mainly to the lower mobile sales and slower consumer electronics demand. The operating result improved to a profit of KRW 221 billion from a loss of KRW 32 billion a year ago, thanks to better results from home appliances and mobile, and the net result was a profit of KRW 157 billion, versus a loss of KRW 414 billion, also supported by better results at LG Display.