LG Mobile reported first-quarter sales down 19.4 percent from a year earlier to KRW 3.422 trillion, hurt by seasonal effects and a drop in prices. The Korean company shipped 27.1 million handsets in the quarter, up 20 percent from the year-earlier period but down 20 percent from Q4. LG said sales were still strong in emerging markets and China, and sales rose sequentially in Korea thanks to new products. However, North America sales declined due to the market shift to smartphones. Operating profit at the Mobile Communications division tumbled to KRW 24 billion from KRW 239 billion a year earlier due to changes in the product mix and spending on expanded distribution in emerging markets, LG said. For the second quarter, LG forecast 5 percent annual market growth to around 290 million units and double-digit sequentilal growth in its shipments thanks to new product launches. LG Mobile also targets higher sales and operating profit in Q2. LG Electronics reported total sales of KRW 13.7 trillion for the first quarter, up 3.7 percent from a year earlier. Operating profit rose 2.6 percent to KRW 529 billion, and the net result improved to a profit of KRW 675 million versus a loss of KRW 200 million a year ago. The increase came mainly from its Home Entertainment division, thanks to strong demand for flat-screen TVs.
