The second largest South Korean business conglomerate LG Corporation posted its Q2 financial results with net profit of $138 million on revenue of $11.16 billion. The net profit marks 46% increase as compared to the same quarter, last year. Although the revenue has increased by 5.2% as compared to the last quarter, there is a decrease of 10.6% when the same is compared to revenue generated last year.
While LG’s mobile business has suffered a loss, thanks to its home entertainment and home appliances business, the company reported profit in the second quarter.
LG Home Entertainment Company posted significantly improved operating profit in the quarter compared to the same period in 2011. This was possible due to an increase in the sales of more premium products, along with an improved supply chain management, hence, operating profit jumped to $187.5 million year-on-year. In terms of sales, there is a 5.8% decline from the same period a year ago to $4.76 billion, but increased 2.8% from the past quarter. LG’s popular CINEMA 3D TVs will continue to drive sales in the second half as it pushes ahead to become the top global seller in the 3D segment.
After a positive first quarter, LG Mobile Communications, seemed to have struggled in the Q2 with an operating loss of $49.48 million. The reason cited for such loss, is increased marketing expenses related to new model launches in the quarter. Overall revenues declined 28.5% to $2.01 billion when compared to the same quarter last year, as a result of shrinking feature phone sales. The company’s smartphone shipments rose to 44% of unit sales, from 36% in the previous quarter, capitalizing on its strength in LTE phones. LG is planning to introduce new LTE models in developed 4G regions including North America and parts of Europe and Asia.
The company had the maximum leverage in profits due to its Home Appliance business which nearly tripled to $143.23 million from the same quarter last year. Revenues also increased year-over-year to $2.50 billion from growth in developing markets.
LG Air Conditioning and Energy Solution Company posted operating profit of $60.76 million, a 17 percent increase year-over-year. Revenues increased 21 percent to $1.28 billion.
