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LG Electronics Reports Third-Quarter Profit; Sales Off Slightly

11/04/2012 07:00:00 PM Eastern

SEOUL, SOUTH KOREA — LG Electronics reported a third-quarter profit, reversing last year’s loss, on slightly lower net sales based on better-than-expected performances in its mobile and home appliance businesses.

For the quarter, ended Sept. 30, LG reported a net profit of $138.6 million and operating profit of $195.06 million, marking “significant improvements from the loss in the same period last year,” the company said.

Third-quarter revenues fell 4 percent year over year to $10.93 billion due to the continuing decline of feature phone sales and overall weak demand, LG said.

LG Home Entertainment Company third-quarter 2012 sales were $4.84 billion, led by an increase in LCD TV sales offsetting sluggish global demand. Percentage sales attributed to 3DTVs and LED TVs increased quarter on quarter with unit sales growing in most regions. Operating profit of $78.6 million was unchanged from third-quarter 2011.

LG Mobile Communications Company improved significantly in the 2012 third quarter, recording operating profit of $19.42 million due in large part to healthy sales of LTE smartphones in South Korea, Japan and the United States. In addition, the Optimus L-Series continued to expand into 3G markets, contributing to the sales increase, LG said.

Revenues increased by 5 percent quarter to quarter to $2.16 billion as shipments exceeded 14 million units, an increase of 9 percent from the previous quarter. The company expects to further increase its shipments and revenue in the fourth quarter with the global launch of the Optimus G and sales of Optimus Vu: 2 in South Korea.

The LG Home Appliance Company had improved sales and operating profit from the same quarter last year. Revenue increased 6.4 percent year over year to $2.53 billion, and operating profit of $113.86 million reflected strong sales in the United States as well as emerging markets

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