South Korea's LG Electronics Inc on Thursday posted its highest
quarterly operating profit in two years, thanks to record appliances and
television earnings that offset another loss for the mobile division.
The
world's second-largest TV maker behind Samsung Electronics Co Ltd said
in a regulatory filing its April-June profit more than doubled from a
year earlier to KRW 585 billion ($521 million), matching its earlier
guidance.
LG said it expected July-September operating profit to
be higher than the KRW 294 billion profit it reported a year earlier,
while revenue would be similar to the 14 trillion won recorded in the
third quarter of 2015.
Operating profit for the appliances
division jumped 49 percent from a year earlier to a quarterly record of
KRW 433.7 billion, the company's top earner for the seventh straight
quarter as sales of premium products continued to support margins.
LG's
TV division swung to a profit of 356.7 billion won, also a quarterly
record, boosted by sales of high-end televisions and improved cost
structure amid declining panel prices.
The mobile business
continued to struggle, however, reporting a KRW 153.5 billion operating
loss, the fifth straight quarter in the red as sales of the flagship G5
fell short of expectations.
The company in April guided for a
sharp second-quarter rebound in mobile earnings on G5 sales. The phone
was received positively by critics for allowing users to upgrade
functions such as the camera through attachable modules.
But initial manufacturing problems undermined early momentum for the G5, analysts said, leading to disappointing sales.
The
firm said the third quarter would remain difficult for the business
though its performance would improve as new products launched.
LG's second-quarter revenue rose 0.6 percent to KRW 14 trillion, matching its guidance for earlier this month.
© Thomson Reuters 2016
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