By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Seoul, South Korea — LG Electronics shipped 10.3 million smartphones and had higher company revenues, but profits declined for the first quarter, ended March 31.
The smartphone unit sales in the quarter were the highest for LG since it entered the category, the company said, and its better-than-expected performance in LG’s mobile operations offset weaker results in the home entertainment business.
First-quarter operating profit of $322.9 million and net profit of $20.3 million declined somewhat from the same period last year. However, revenues in the first quarter rose 6.8 percent year over year to $13.01 billion mainly due to the improved performance of the mobile business, the company said.
LG Home Entertainment Company revenues of $4.77 billion declined year on year due to lower sales of plasma TVs and IT products. Sales of LCD TVs increased in Europe and developing markets such as China and CIS from the same period last year. Operating profit of $27.68 million, although lower than last year, increased compared to the previous quarter. Although TV and IT market will continue to be stagnant, LG expects stronger results with the rollout of new 3D smart TVs and Ultra High-Definition TVs, the CE manufacturer said.
LG Mobile Communications Company results improved significantly in the first quarter, recording revenues of $2.96 billion on smartphone shipments of 10.3 million units, an increase in revenue of 28.5 percent from the same period last year.
Healthy sales of LTE smartphones, such as the Optimus G and Optimus G Pro along with 3G smartphones including the Optimus L Series and Nexus 4, contributed to the improved results, LG said.
Operating profit increased almost four-fold from the same period last year to $122.69 million thanks to stronger revenue and better cost structure. The company expects to further increase shipments and sales in the second quarter with the worldwide rollout of Optimus L Series II targeting 3G markets with the 5.5-inch FullHD IPS Optimus G Pro and Optimus F Series in countries with 4G LTE networks.
LG Home Appliance Company sales in the first quarter of 2013 increased 11 percent from the same period last year to $2.59 billion, largely due to improved sales in the United States, Central America and the Middle East.
A 29 percent decrease in operating profit year over year to $94.1 million reflected increased investments in R&D and marketing. LG will focus on strengthening its competitiveness and market leadership in a weak worldwide market with differentiated products and a strengthened product lineup.
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