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LG did better than expected

by on29 October 2015

But earnings plunged 37 per cent

Telly maker LG saw its third-quarter operating earnings fall nearly 37 per cent but is patting itself on the back because things could have been a lot worse.

LG beat expectations as its TV business returned to profit after a second-quarter loss and said the July-September profit was $257.43 million. But that still beat a forecast of $232 million profit which the tarot readers working for the cocaine nose jobs of Wall Street predicted.

Revenue for the quarter fell 4.7 percent from a year earlier.

LG’s Mobile Communications arm reported global shipments of 14.9 million smartphones, a 6 percent increase from the previous quarter.

Despite a 12 percent sales increase in North America, overall revenues of $ 2.89 billion were 7 percent lower quarter-on-quarter and decreased 21 percent year-on-year due in large part to weaker demand for high-end devices in Korea.

LG expects the launch of the advanced V10 and price-competitive Nexus 5X smartphones in the fourth quarter to improve the overall product mix.

LG’s Home Entertainment arm reported third-quarter revenue of $3.67 billion which was an increase of 9 percent quarter-on-quarter. This was due to solid sales in UHD and OLED TVs in markets such as North America, Latin America and Commonwealth of Independent States.

Profitability also increased from the previous quarter as a result of improvements in product mix and cost structure. With continuing soft global TV demand.

LG said it plans to bolster its profitability by increasing its marketing focus in the premium segment while continuing to improve its cost competitiveness.


Last modified on 29 October 2015
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