South Korea’s LG Electronics said Wednesday (25 July) its second-quarter net profit surged 47% \u00a0from a year earlier, thanks largely to booming sales of flat-screen televisions and home appliances.<\/p>\n
The world’s second-largest flat-screen TV maker by shipments after Samsung Electronics reported net profit of 159 billion won ($138.2 million) for April-June, up from 108.44 billion won a year earlier.<\/p>\n
Operating profit more than doubled to 349 billion won from the same period last year.
\nHowever, its cellphone business – a segment the company has flagged as a strong pillar of growth – swung to a loss in the three-month period after remaining in positive territory for the previous two quarters.<\/p>\n
The reversal was blamed on high marketing costs for promoting its new handsets and squeezed margins due to the weaker euro.<\/p>\n
Revenues fell 10.6% from a year earlier to 12.86 trillion won, mainly because of declining feature phone sales and weak demand for IT products.<\/p>\n
Despite the typically-strong selling season for consumer electronics in the second half of every year, analysts expect LG to report weaker profit in the third quarter to September.<\/p>\n
LG’s chronic weakness in the mobile business was likely to persist throughout the year amid mounting rivalry from lower-end smartphone competitors and the emergence of more high-margin devices from bigger rivals, they said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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