LG Quarterly Results See Mobile Business Continue To Decline
LG Electronics’ latest quarterly earnings report has seen the company continue to lose ground in the smartphone market.
The company’s mobile communications division brought in revenues of approximately $2.3 billion USD across the third quarter – a 23% drop from the same period in the previous year.
LG reported shipping 13.5 million smartphones during the period, with reduced sales and restructuring costs culminating in a quarterly operating loss of $389.4 million USD.
It’s the mobile division’s sixth quarterly loss in a row and the largest to date.
According to a statement issued by the company says that their “Priorities for the final quarter of the year will include increasing sales of the new LG V20 smartphone and mass-tier K and X series and finalizing business structural improvements in the mobile division to be better prepared for the challenges ahead.”
However, some shortcomings and losses in the smartphone arena have been offset by gains in the company’s other divisions.
LG’s home entertainment business reported the highest operating profit and margin in its history ($340.4 million USD) as sales of premium LG OLED and Ultra HD TVs continued to gain traction in key markets.
The company advised that “With the peak holiday selling season ahead, overall demand for TV products is expected to increase although profitability will likely be affected by higher material costs and increased marketing investments.”
Meanwhile, the home appliance branch of the company reported a revenue increase of 3 percent year-over-year with its strongest performance coming from European and Asian markets.
Strong performance of air conditioners and premium appliances helped profitability, resulting in a solid operating margin of 8 percent – a 40 percent improvement from the same period last year.
Finally, the company also saw a 6% increase in third-quarter sales for the Vehicle Components division.
They advised that “with more and more electric vehicle projects – led by the GM Bolt – on the horizon, the VC Company expects to see continued growth.”
Overall, LG posted an operating income of $252.7 million and revenue of $11.8 billion.