LG Q2 up 165%
LG Electronics has revealed a 165 per cent increase in Q2 net profit compared with the same period last year, reflecting strong earnings from both the TV and mobile operations. LG reported Q2 2014 net profit of KRW 412 billion ($399.8 million) and operating profit of KRW 606 billion, an increase of 26.5 per cent year-over-year. Unaudited Q2 consolidated revenues of KRW 15.37 trillion increased 7.7 per cent from the previous quarter.
LG attributes the turnaround to strong sales of its flagship G3 smartphone model, and cheaper L-series models which sold well in the North American market.
The LG Home Entertainment Company saw steady performance with Q2 revenues of KRW 5.09 trillion, a 3 per cent increase quarter-over-quarter and almost unchanged from the same quarter 2013. Operating profit of KRW 154.5 billion was an increase of 64.9 per cent from the same quarter last year as a result of better product mix and lower fixed costs.
LG expects demand for Ultra HD TVs in key markets will continue to drive LCD TV revenue growth. The B2B market, led by monitors and digital signage, also is expected to contribute to LG’s growth in this segment.