By On Jul 25 2012 - 10:36am

LG Reports 46% Gain In Net Profits

LG commented that operating profit in the most recent quarter increased significantly year over year. Stronger performance in home entertainment and home appliances compared with the second quarter last year helped offset profit declines in LG’s mobile business, the company said. Second-quarter net profit increased 46 percent year over year to $138.02 million while operating profit more than doubled to $302.95 million from the same period last year. Revenues, while 5.2 percent higher than in the first quarter, declined from last year’s second quarter by 10.6 percent to $11.16 billion) due to declining feature phone sales and weak demand for IT products.

LG Home Entertainment Company posted significantly improved operating profit in the quarter compared with the same period in 2011. Due in large part to an increase in sales of more premium products and improved supply-chain management, operating profit more than doubled to $187.5 million year over year. Sales declined 5.8 percent from the same period a year ago to $4.76 billion but in-creased 2.8 percent from the first quarter of 2012. LG’s Cinema 3DTVs will continue to drive sales in the second half as it pushes ahead to become the top global seller in the 3D segment, the company said. LG Mobile Communications Company, after a positive first quarter, reported an operating loss of $49.48 million mainly due to greater marketing expenses related to new model launches in the quarter. Overall revenues declined 28.5 percent year over year to $2.01 billion) as a result of shrinking feature phone sales but smartphone shipments rose to 44 percent of unit sales, up from 36 percent the previous quarter, capitalizing on LG’s strength in LTE phones.

LG is planning to introduce new LTE models in the second half in developed 4G regions, including North America and parts of Europe and Asia. LG Home Appliance Company saw its second-quarter 2012 operating profit nearly triple to $143.23 million from the same period last year thanks to a better product mix and improved cost efficiency, the company reported. Revenues also increased year over year to $2.5 billion from growth in developing markets. The company still expects improved results in the second half compared to the previous year despite ongoing weak demand in developed markets.

LG Air Conditioning and Energy Solution Company posted operating profit of $60.76 million, a 17 percent increase year over year. Revenues increased 21 percent quarter to quarter but declined year over year to $1.28 billion.