LG Reports Lower Net Income In Q2

By TWICE Staff -- TWICE, 7/27/2011

Seoul, South Korea - LG Electronics reported a steep drop in net income and lower sales in home entertainment and handsets during the second quarter.

Net income was 108 billion Korean won in the quarter, far lower than 856 billion won in the same quarter last year.

Sales were 14.38 trillion won in the quarter, down slightly from the previous year's 14.4 trillion won.

Home entertainment and handset sales were down 5 percent each year on year.

In-home entertainment sales were 5.42 trillion won, down from the prior year's 5.72 trillion. Operating income was 90 billion won, an increase from the 26 billion won loss of the prior year.

Handset sales were 3.2 trillion won, down from the prior year's 3.37 trillion won. The operating loss for the unit was better, with a loss of 55 billion won, compared with an operating loss of 128 billion in the prior year.

There was a bright spot in home appliances. Sales in the quarter were up 6 percent to 2.88 trillion won compared to the prior year. Operating income was down though to 51 billion won, compared with the prior year's operating income of 185 billion won.