LG’s solid profit in third quarter

Better-than-expected performance in the mobile and home appliance businesses helped offset a slight decline in overall year-over-year sales for the third quarter, it reported, with all four companies recording strong operating profits.

The third-quarter net profit of $138.57 million with operating profits hitting $195.06 million showed significant improvements from a loss during the same period last year, while third-quarter revenues falling 4 per cent on-year to $10.93 billion due to the continuing decline of feature phone sales and overall weak demand.

LG Home Entertainment Company sales of $4.84 billion in the third-quarter of 2012 were led by an increase in LCD TV sales, offsetting sluggish global demand. In the fourth quarter, the company plans to increase sales of these product lines by expanding marketing of CINEMA 3D Smart TVs and enhancing its premium brand positioning with the new Ultra HD TV.

Meanwhile, LG Mobile Communications Company improved significantly in the third quarter, recording operating profit of $19.42 million due in large part to healthy sales of LTE smartphones in Korea, Japan and the United States. The company expects to further increase its shipments and revenue in the fourth quarter with the global launch of the Optimus G superphone and sales of Optimus Vu: 2 in Korea.

LG Home Appliance Company reported improved sales and operating profits  with revenue increasing 6.4 per cent on-year to $2.53 billion and an operating profit of $113.86 million thanks to strong sales in the United States and emerging markets. With global appliance demand stagnant, the company expects the fourth quarter will be challenging, but additional marketing promotions and new model launches should help offset the situation.

LG Air Conditioning and Energy Solution Company posted a 3 per cent on-year sales decline to $859.66 million, while profitability increased slightly on-year.