South Korea's LG Elec reports best quarterly profit in nearly eight years

Dora Pope
April 29, 2017

South Korea's LG Electronics Inc said today its first-quarter operating profit rose to its highest in almost eight years on strong sales of home appliances and televisions, with revenue likely to increase in the current quarter.

H&A reported a 10-per-cent increase in first-quarter sales from the same period a year earlier and 15 per cent higher than the previous quarter.

As LG enters the peak season, the company foresees an improvement in the business environment across much of Asia and Latin America, two key growth markets.

The final performance came in line with LG Electronics' estimate report released earlier this month, when the company said the operating profit was presumed at 922 billion won.

The mobile division posted 3.01 trillion won in sales, up 2 percent from a year earlier, driven by the launch of the premium G6 smartphone and new mass-tier model, the company said. It also turned around from the operating loss of 35.3 billion won in the previous quarter.

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The company reported smartphone shipments of 14.8 million units in the quarter, up 10 per cent from the first quarter of past year in large part thanks to the Americas. The H&A division raised 520.8 billion won in operating profit on sales of 4.6 trillion won in the first quarter.

The firm's mobile division reported a 200 million won operating loss for the quarter, its eighth-straight quarter in the red, with the G6 only having begun selling in March.

"Continued investments in R&D and growth are expected to continue to affect profitability this year", the company said. The unit logged an operating margin of 8.8 percent, higher than any first-quarter figure recorded by LG.

"We forecast a better performance in the home entertainment division, considering the growing popularity of the LG OLED and Ultra HD TV series as well as the new LG Signature OLED TV W", the spokeswoman said.

Other reports by My Hot News

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