Seoul: South Korean consumer electronics maker LG Electronics Inc reported a third straight quarterly profit on Wednesday as sales of smartphones designed for faster wireless networks helped end losses at its mobile phone business.
LG Electronics said its net profit totalled 157 billion won (Dh522 million, $142 million) for the three months ended September 30, compared with a 414 billion won loss a year earlier. Sales fell 4 per cent to 12.4 trillion won as LG sold fewer low-end cellphones and the weak economy pressured demand for TVs.
The result was better than expected. LG’s shares closed up 1.4 per cent in Seoul following the earnings announcement.
The maker of Optimus G smartphones lost money in the last two quarters of 2011 before returning to profit in the first quarter of this year when the mobile communications division made a small profit.
LG forecast higher smartphone sales for the current quarter but warned lower seasonal demand for home appliances and air conditioners may result in a decline in overall profit. LG’s mobile business also faces stiff competition in the premium smartphone market dominated by Apple Inc. and Samsung Electronics.
