LG Profit Plunges In Q1 As TV Sales Decline
LG posted net income for the quarter of 38.4 billion won (around $44.91 million), down 59 per cent on last year’s corresponding period, while revenue of 13.99 trillion won was virtually unchanged year-on-year.
LG’s operating income of 305.2 billion won was down 36 per cent year-on-year.
LG’s home entertainment business sales declined 18 per cent quarter-on-quarter, which LG stated was due to seasonality, while attributing a 5 per cent year-on-year decline to weaker currency movements in emerging markets.
A 6.2 billion won operating loss posted by the home entertainment business compared to a profit of 216.1 billion won year-on-year.
“A stronger focus on 4K ultra-HD and OLED TV marketing and increasing demand in Asia and North America for all TV products are expected to improve the outlook for the LG Home Entertainment Company in the second quarter,” LG stated.
LG’s mobile business posted an operating profit of 72.9 billion won compared to an operating loss of 7.3 billion won in last year’s corresponding quarter.
LG stated it shipped 15.4 million smartphones throughout the quarter, an increase of 26 per cent year-on-year.
“The launch of the LG G4 in the second quarter is expected to strengthen the company’s presence in the premium smartphone segment and further improve profitability,” LG stated.
LG’s G4 flagship smartphone is beginning its global rollout in Korea from today.