LG Electronics saw its mobile phone business fall into the red again in the second quarter, due to extra marketing costs for the launch of new models. LG Mobile Communications posted an operating loss of KRW 57 billion (USD 49.5 million), versus a profit of KRW 39 billion in the first quarter of this year and a loss of KRW 54 billion a year ago. Revenues declined 28.5 percent year-over-year to KRW 2.32 trillion, hurt by shrinking feature phone sales. Shipments declined 4 percent from the first quarter to 13.1 million phones, but LG said the share of smartphones rose to 44 percent, from 36 percent the previous quarter, thanks to strength in LTE phones. The company is planning to introduce new LTE models in the second half in North America and parts of Europe and Asia. The weaker results in mobile, as well as lower sales from home entertainment devices and air conditioning, led to a 10.6 percent annual drop in LG's total sales for the quarter, to KRW 12.86 trillion. Operating profit improved compared to a year earlier, to KRW 349 billion from KRW 158 billion, and net profit rose to KRW 159 billion from KRW 109 billion.
