Seoul, South Korea - LG Electronics saw net profit decline by 33 percent in the fiscal second quarter, to 856 billion won from 1.28 trillion won in the same period last year.

Overall sales were down 0.7 percent in the quarter, and operating profit plunged 90 percent from the year-ago period, coming in at 126.2 billion won.

While sales of TVs and plasma panels rose 19 percent in the quarter and the home entertainment unit remained in the black, the division's operating profit declined sharply, to 28.1 billion won from 267.8 billion won in last year's Q2. Sales topped 5.3 trillion won.

LG cited declining average selling prices as a result of competition among set makers for the decreased profitability.

LG's mobile communications division reported a sales decline of 29.5 percent year to year, leading to an operating loss of 133 billion won.

Broken out, handset sales slipped 30.8 percent year to year, for a 120 billion won loss. Handset sales grew 7.4 percent quarter to quarter.

One bright spot for the company was the home appliance unit, which posted a healthy 16.5 percent growth in sales year to year and a profit of 185 billion won, up from 178 billion won a year ago.

Sales for LG's air conditioning division were basically flat year to year, and profit dipped to 59 billion won from 152 million won a year ago. The company said AC sales were strong in North America but a cooler-than-usual summer in Korea and the cloudy financial picture in Europe weakened overall sales.

 The company's business solutions unit finished Q2 in the red despite a 14.7 percent sales increase over last year's quarter.
Release Date: 
2010-07-28 14:41:31
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Abstract Web: 
Seoul, South Korea - LG Electronics saw net profit decline by 33 percent in the fiscal second quarter, to 856 billion won from 1.28 trillion won in the same period last year.
Article Type: 
News
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