LG Electronics recorded a net profit in the first quarter of the year of KRW38.4 billion ($35.7 million), which was 58% lower than last year’s Q1 net profit of KRW93 billion ($86.5 million) though significantly better than the previous quarter’s net loss of KRW206 billion ($191.6 million). Turnover in Q1 was flat year on year at KRW14 trillion ($13 billion).
The company’s home entertainment business saw Q1 turnover fall 5% YoY to KRW4.4 trillion ($4.1 billion). Operating margin was lower than the same period of last year because of unfavourable currency exchange and seasonality resulted in falling sales of LCD TVs in North America, Europe, CIS and Latin America. A stronger focus on 4K Ultra HD and OLED TV marketing and increasing demand in Asia and North America for all TV products are expected to improve the outlook for the business in Q2.
LG’s mobile division recorded its highest first-quarter revenues since introducing its first Android device in 2010. Turnover for the quarter was up 5% YoY at KRW3.6 trillion ($3.3 billion) and the company shipped 15.4 million smartphones, an increase of 26% YoY.
