LG profits improve in Q1, despite further sales drop

News Wireless Global 25 APR 2012
LG profits improve in Q1, despite further sales drop
LG Electronics reported a continued fall in revenues in the first quarter, but improved its profits thanks to cost reductions and a better product mix. The Korean company posted sales of KRW 12.23 trillion, down 7.1 percent from a year earlier, while operating profit jumped to KRW 448 billion from KRW 131 billion. The net result improved to a profit of KRW 243 billion from a loss of KRW 16 billion in the first quarter of 2011. 

The Mobile Communications division posted a turnaround to operating profit of KRW 39 billion, versus a loss of KRW 101 billion a year ago, while revenues fell 14 percent year-on-year to KRW 2.497 trillion. The company shipped 13.7 million phones in the quarter, down 22 percent from Q4. LG said profits improved thanks to a bigger share for smartphones and especially LTE devices, and a better cost structure. While the company does not expect market growth to accelerate, smartphone demand is expected to continue to increase, led by the further roll-out of LTE, especially in Europe. Upcoming launches include more LTE models, the L-Style series 3G smartphones and a quad-core smartphone. 

LG also saw a strong improvement at its Home Entertainment division, where operating profit jumped to KRW 217 billion from KRW 113 billion, on sales down 6.8 percent year-on-year to KRW 5.330 trillion. This was led by strong 3D TV sales and an improved supply chain, and LG expects sales to improve later in the year on the back of the Olympics, new 3D models and demand for smart TV. 

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Mobile

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Global

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Financial figures, Consumer devices, Handsets

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