LG Electronics showed an improvement in second-quarter results at its mobile phone business, as new models in its Optimus range started to boost its revenues in the smartphone market. LG shipped 24.8 million phones in the quarter, up slightly from Q1, while revenues grew 11 percent sequentially to KRW 3.2 trillion thanks to the growing share of smartphone sales. Revenues in the handset business were still down 5.1 percent from the second quarter of 2010. The operating loss at the mobile unit narrowed to KRW 55 billion from KRW 120 billion a year ago and KRW 101 billion in the first quarter, thanks to cost-cutting efforts and the improved product mix. LG said it saw sales growth from the Optimus One/2X in North America, while in Europe smartphone sales improved but feature phones were weaker. In emerging markets, it focused on profitable business. The company said it expects competition in the handset market to intensify as more 3D handsets are launched and the LTE market starts. It aims to increase sales in Q3 with timely introductions of new models with "hardware competency" and boost profitability by improving the product mix. LG reported total sales for the quarter of KRW 14.41 trillion, down 0.2 percent from a year earlier. Operating profit was up 25 percent to KRW 158 billion, while net profit plunged 87 percent to KRW 108 billion due to weak results at LG Display.
