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| Korea's LG sees 33pct drop in second quarter profit |
| 30-JUL-2010 Intellasia | AFP |
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| 30 Jul, 2010 - 7:00:00 AM |
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South Korea's LG Electronics Wednesday reported a 33 percent drop in its second-quarter net profit compared to a year earlier as its mobile phone business lost money for the first time in four years.
The world's third-largest mobile phone maker reported an overall net profit of 856 billion won (721 million dollars) from April-June, compared to 1.28 trillion won a year earlier.
Sales fell 0.7 percent year-on-year to 14.41 trillion won, while operating profit plunged 90 percent to 126.2 billion won from a revised 1.24 trillion won a year earlier.
The figures are consolidated, meaning they cover overseas affiliates.
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| South Korean pedestrians walk past a logo of LG Electronics in Seoul in 2008. South Korea's LG Electronics Wednesday reported a 33 percent drop in its second-quarter net profit compared to a year earlier as its mobile phone business lost money for the first time in four years.
(AFP/File/Jung Yeon-Je) |
LG's mobile communication division, which accounts for some 30 percent of total sales, suffered an operating loss for the first time since the first quarter of 2006.
Revenue from mobile phones increased 5.8 percent quarter-on-quarter but fell 29.5 percent year-on-year.
LG attributed the operating loss to investment in research and development and expansion of channels in emerging markets.
Analysts quoted by Dow Jones Newswires also pointed to tepid demand for LG's new Optimus smartphone as a key factor that had hurt the division.
The company said it expected overall business to post "modest" growth in the third quarter thanks to a continuing global economic recovery.
"LG will continue to introduce new products in major categories, including smartphones, while investing aggressively in (research and development) and marketing and developing premium products," it said in a statement.
http://news.yahoo.com/s/afp/20100728/bs_afp/skoreaelectronicslgcompanyearnings_20100728112513
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