LG's profits up 165% in second quarter

SEOUL, SOUTH KOREA: LG Electronics posted a 165% rise in second-quarter net profit compared with a year ago, as strong TV and mobile phone sales boosted the turnaround to the company.

25 Jul 2014

Sales of the LG G3 smartphones have helped boost the company's profits by 165% in the second quarter. Image: Phone Arena

LG said in a statement that net profit for the April to June quarter reached 412bn won ($399.8m).

Operating profit rose 26.5 percent for the previous year to 606 billion won, while sales rose 0.9 percent to 15.37trn won.

Operating profit of the firm's TV unit - which accounts for the lion's share of LG's overall sales - rose by 65 percent year-on-year to 154.5 billion won, while TV sales remained nearly unchanged at 5.09trn won.

The firm noted the popularity of its ultra high-definition TVs in key markets.

LG's handset unit also recorded a dramatic turnaround with an operating profit of 85.9bn won after racking up losses for three past consecutive quarters.

The world's fifth-largest smartphone manufacturer struggled for years with sluggish sales after making a late entry to the market after competitors like Samsung.

But the firm recently showed signs of revival, shipping a record 14.5m smartphones in the second quarter, a 20% increase from a year ago.

"Much of the success was due to the initial popularity of the LG G3 in the Korean market and strong sales of L-series smartphones," LG said.

LG's latest flagship smartphone, the G3, won rave reviews after its launch in May.

Source: AFP via I-Net Bridge

Source: I-Net Bridge

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