Mobile business turns around
LG has shocked the cocaine nose jobs of Wall Street by actually making money. The company which appeared to be going down the gurgler thanks to its dependence on tellys that no one was buying and patent wars swung to a third-quarter profit.
Apparently the company saw its mobile phone business return to the black on a stronger product line-up. Its telly business is still rubbish but the return to profit seems to have surprised everyone. The company's July-September operating profit came in $200.3 million from a loss a year ago. While some analysts expected a profit, none of them thought it would be that high.
The South Korean firm hopes its latest phones, such as Optimus G and Optimus Vu II packed with powerful hardware and software features, will help it push into top of the range and more lucrative part of the smartphone market. Earnings were reduced by an increase in spending on marketing as the company sought to clear inventory amid a weak global economy.
Shares in LG, valued at over $11 billion, rose 2 percent after the earnings announcement. The stock has climbed 26 percent over the past three months, as shareholders expected an improvement in its handset business.