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LG Shrinks its Losses As Handset Sales Decline
Published on:
LG Electronics has reported that its first-quarter revenues dipped very slightly by 0.4% to KRW 13.2 trillion (US$11.7 billion). After two consecutive quarters of losses, operating profit turned the corner with KRW 131 billion (US$116 million). LG recorded a KRW 16 billion (US$14 million) net loss this quarter mainly due to a KRW 56 billion loss (US$50 million) on investments in affiliated companies.
LG's mobile phone division first-quarter revenues decreased by 8.3 percent year-over-year to KRW 2.9 trillion (US$2.6 billion). While overall handset shipments declined quarter-over-quarter as a result of slow seasonality, operating profit showed significant improvement in the first quarter due to an increase in smartphones in the company's portfolio and reduction in overhead costs.
The company expects to improve its product mix by launching new smartphones including the LG Optimus Black and the LG Optimus 3D and gain profitability by further cutting costs.
2011 2Q Business Direction and Prospects
LG Electronics expects to see solid growth in the second quarter of 2011 with the start of the high season for air conditioners, continued momentum in home appliances, and aggressive global sales of LG CINEMA 3D TVs and Optimus smartphones.
Tags: [lg electronics] [optimus 3d] [3d] [optimus black] [lg optimus 3d] [cinema] [lg optimus] [Korea]
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