LG Electronics reported a small rise in third-quarter revenues and higher profits, helped by reduced losses at its smartphone business and expansion in the automotive market. Total revenues were up 1.3 percent to KRW 15.43 trillion (USD 13.76 billion), and operating profit rose 45 percent to KRW 749 billion, slightly ahead of the company's preliminary report. Net profit jumped 48 percent to KRW 497 billion, helped by lower taxes and fewer one-time charges.
The Mobile Communications division saw a further erosion in revenues, down 24 percent year-on-year to KRW 2.04 trillion, but LG limited the sequential decline to 1.5 percent. The company said it faces tough competition and stagnating demand, with price pressure only set to intensify in Q4 during the year-end holiday sales.
The operating loss in mobile totaled KRW 146 billion, more than halving from a loss of KRW 381 billion a year ago and also down from KRW 185 billion in Q2, thanks to cost efficiencies and an improved product portfolio, LG said. The company said it will continue to work on growing sales and improving profitability, helped by new products like the V40 ThinQ and other products at "reasonable price points".
At LG's consumer electronics and home appliances division, profits were under pressure from weaker demand in emerging markets and currency effects. Home Entertainment sales fell 8.6 percent to KRW 3.71 trillion, as TV demand slowed after the World Cup, and operating profit declined 16.8 percent to KRW 325 billion.
