Published : Oct. 30, 2019 - 15:50
LG Electronics Inc. said Wednesday its third-quarter net profit dropped 30.5 % from a year earlier due to its lackluster mobile business.
The South Korean electronics maker said its net earnings stood at 345.7 billion won ($296 million) in the July-September period, compared with 497.1 billion won a year ago.
Its sales rose 1.8 % on-year to 15.7 trillion won, and its operating profit gained 4.4 % to 781.4 billion won in the third quarter, the largest quarterly result since 2009, the company said.
(Yonhap)
The home appliance and air solution division earned 5.3 trillion won in sales, the largest third-quarter revenue, on the back of strong sales at home and abroad.
Its TV business posted 3.9 trillion won in sales, with the premium OLED lineup boosting its overall profitability.
The mobile communication division logged 1.5 trillion won of revenue but booked 161.2 billion won of operating losses on weak demand in the global market and rising marketing costs for new phones.
The smartphone business marked its 18th consecutive quarterly loss, but the company cut losses from the second quarter as it moved its Korean smartphone factory to Vietnam in October.
In the fourth quarter, LG Electronics said the business environment will be unfavorable at home and abroad in the offseason and that there will be lingering uncertainties in global trade.
The company said it will expand its premium lineup of home appliances and OLED TVs to enhance profitability.
The tech firm said it will step up marketing for its dual screen smartphones to target the premium handset market in the peak season, expecting reduced operating losses following its factory relocation to Vietnam. (Yonhap)