LG Electronics Returns to Quarterly Profit
South Korea's LG Electronics today announced that after two consecutive quarters of net losses, the company has turned the corner with a net profit of KRW 243 billion (US$214.9 million).
Unaudited consolidated financial results showed consolidated revenues of KRW 12.2 trillion (US$10.8 billion) with an operating profit of KRW 448 billion (US$396.1 million). This compares favorably to the consolidated operating profit of KRW 280 billion for all of 2011.
LG's mobile communications division saw operating profit more than triple quarter-over-quarter from KRW 12 billion to KRW 39 billion (US$34.5 million) as a result of a better product mix and an increase in the proportion of smartphone sales.
Overall revenues declined 14 percent year-over-year from KRW 2.9 trillion to KRW 2.5 trillion (US$2.2 billion) as a result of declining feature phone sales but smartphone revenue increased due to the popularity of Optimus LTE and Optimus Vu: in the home market.
The company expects to strengthen its smartphone line-up even more in the second quarter with the introduction of its L-Style series and quad-core smartphones.
LG Home Appliance Company's first-quarter 2012 operating profit increased 48 percent from the same period last year to KRW 152 billion (US$134.4 million) thanks to higher average sales price, better product mix and cost efficiency. A 2.7 percent decrease in revenues year-over-year, to KRW 2.5 trillion (US$2.2 billion), primarily reflected a slowdown in China and developed markets.
LG Air Conditioning and Energy Solution Company saw operating profit more than double from the same period last year to KRW 81 billion (US$71.6 million) thanks to new high-end products and cost structure improvements. First-quarter revenues were essentially flat, declining 1.2 percent year-over-year to KRW 1.2 trillion (US$1.1 billion).
LG Home Entertainment Company posted significantly improved operating profit in the quarter, compared with the same period a year ago. Sales, while strong at KRW 5.3 trillion (US$4.7 billion), declined by 6.8 percent compared with the first-quarter of 2011, largely due to the a sluggish European economy.