24 July 2013 07:56

LG Electronics Second-Quarter Profit Down

LG_L

SEOUL-- LG Electronics Inc. (066570.SE) reported on Wednesday an 8.0% on-year decline in net profit as a result of a squeeze in margins for its television business.

Net profit was 155.5 billion won ($139 million) for the April-June quarter--down from 169 billion won. Operating profit decreased 9.0% to 479.3 billion won from 526.7 billion won.

A better performance from mobile telephones and solid seasonal demand for air conditioners softened the extent of profit decline from the previous quarter when it fell 91%.

The company sold 12.1 million smartphones--more than twice the 5.7 million units shipped a year ago.

Total revenue for the quarter ended June 30 rose 10.1% to 15.23 trillion won.

"Competition in the TV market will stiffen in the third quarter amid bleak demand," the company said in a statement. It will try to improve performance with top-end models like ultra-high definition TVs.

LG is betting increasingly on its mobile unit to drive profits--particularly with its next-generation flagship dubbed the G2 slated for launch in early August. Expectations for TVs remain low because of weak demand.

Demand for LG's fancy but expensive TVs with organic, light-emitting diode screens won't pick up soon because of the price tag, analysts said.

The mobile-telephone unit accounted for 20.5% of sales while televisions accounted for 36.1%. Operating profit margin for mobile phones was 2.0%. Margins for TVs thinned to 1.9% from 5.5%.

Write to Min-Jeong Lee at min-jeong.lee@wsj.com

Subscribe to WSJ: https://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 24, 2013 02:15 ET (06:15 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

 

Comments

#1 | Friday 5 Dec (12:01)
they will have to do better things and should use the best of the technologies in future..fun bingo and also the great new bingo deals for any kind of bingo gaming.
#2 | Wednesday 5 Apr (09:33)
A very awesome blog post. We are really grateful for your blog post. combat, law enforcement You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. buy dissertation UK

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
22 Jul
VELO
Company Release no. 11/2019 To: NASDAQ Copenhagen A/S Copenhagen, Denmark, 22 July 2019 ..
26
22 Jul
BAVA
Congos sundhedsminister er pr dags dato blevet afsat som reaktion på hans håndtering af landets ebol..
24
23 Jul
VELO
  Ikke enig, jeg er derimod af den overbevisning, at langt de fleste der konvertere over på Envarsus..
23
21 Jul
GEN
Hmm. Det er med blandede følelser jeg for tid til anden følger med i Genmab trådende. Da Genmab s b..
20
17 Jul
I:SP500
På verdensplan vil næsten ingen acceptere økonomisk tilbageholdenhed til fordel for klimaet. En mill..
16
22 Jul
VELO
  Ja, vi var flere her i forum, der mente et forecast på omkring 80 mio. dollar var realistisk for 2..
15
18 Jul
 
Foranlediget lidt af debatten i den sidste uges tid, kommer her fredagsjoken: En investor her på EI..
15
20 Jul
TEVA
Henningmaria: Casen omkring Teva har ikke ændret sig fundamentalt blot folks følelser pga verserende..
14
22 Jul
OMXC25
Kineserne behøver ikke engang installere spionageudstyr i huawei udstyr. De kan købe al den informat..
13
17 Jul
I:SP500
Tøjindustrien står for 10 % af udslippet af klimagasser ifølge The Angry Clean Energy Guy. Det er me..
13

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Issue of Equity
2
Transaction in Own Shares
3
End of Day
4
Issue of Equity
5
Issue of Equity

Copyright Berlingske Media 2019  Cookie- and Privacy policy  |  Cookies  |   General terms of trade  |   Terms of use and IP rights
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
23 July 2019 23:48:19
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20190703.1 - EUROWEB5 - 2019-07-24 00:48:19 - 2019-07-23 23:48:19 - 1000 - Website: OKAY