 LG reports “solid” first-quarter and says its mobile business “resurging” but TV business gets a thumping in Q1.
However, better mobile performance wasn’t enough to save the electronics giant – net profit fell to US$20.3m, it said today. Revenue rose almost 7% to percent US $13.01bn. Operating profit for the No. 2 TV maker behind Samsung also slid to 350 billion won ($322.88 m) up from the previous quarter although fell compared to the 402 billion figure recorded the same time a year ago. LG home entertainment division took a major hit, in particular TVs, which are suffering the brunt of contracting margins and lower demand. LG who recently launched its Android Optimus G “superphone” in OZ, said it shipped 10.3 million smartphones January – March – its highest number since it entered the smartphone race. Better-than-expected performance in mobile communications offset a “weaker” home entertainment business as TVs and IT slumped. Revenues for LG Home Entertainment – traditionally its strongest LG reported “healthy” sales of Optimus range including 4G LTE smartphones including G, G Pro, Optimus L Series and Nexus 4 made in conjunction with Google contributed to the result. Mobile revenues lifted almost 30% to $US 2.96bn. It is forecasting higher sales in the second quarter with new Optimus L Series II targeting 3G markets with the 5.5-inch Full HD IPS Optimus G Pro and Optimus F Series in countries with 4G LTE networks. The giant says “TV and IT market will continue to be stagnant,” but expects new 3D Smart and ULTRA HD TVs 4K will boost results in Q2. Home Appliance sales increased 11 percent to US$ 2.59bn, largely due to improved sales in the US, Central America and the Middle East. Operating profit fell, reflecting increased investments in R&D and marketing. The giant launched its new SmartWasher range here earlier this month. LG said its focus is on “strengthening its competitiveness and market leadership” in a weak worldwide market with “differentiated products and a strengthened product line-up.” |
