Seoul, South Korea — LG’s first-quarter cellphone revenues rose 5 percent to the highest first-quarter level since 2010, when the company launched its first Android smartphone, the company announced.
In the quarter, the LG Mobile Communications Company shipped 15.4 million smartphones, up 26 percent compared with the year-ago period. Revenues were up 5 percent to 3.6 trillion Korean won ($3.27 billion), while operating profit margins improved quarter over quarter and year over year, the company said without elaboration.
Cellphone revenues in North America grew 66 percent from the same period in 2014. The launch of the LG G4 in the second quarter “is expected to strengthen the company’s presence in the premium smartphone segment and further improve profitability,” the company said.
LG’s consolidated revenues, however, were almost unchanged from the year-ago level because of “modest revenue declines in TVs,” it said.
LG’s Home Entertainment Company reported a 5 percent decline in first-quarter revenues to 4.44 trillion won ($4.03 billion). The business’s operating margin declined an unspecified amount compared with the year-ago period because unfavorable currency exchange movements and seasonality produced declining revenues from LCD TVs in North America, Europe, Latin America and other areas vs. the previous quarter. The company contended that “a stronger focus on 4K Ultra HD and OLED TV marketing and increasing demand in Asia and North America for all TV products are expected to improve the [product group’s] outlook in the second quarter.”
In LG’s Home Appliance & Air Solution Company, revenues fell 2 percent year over year to 4.06 trillion won ($3.69 billion) because of greater competition in North America and unfavorable foreign currency exchange movements in developing markets. Operating profits, however, were up 9 percent to 229.3 billion won ($208.5 million) “largely as a result of improved product mix and cost structure,” the company said.
On a consolidated basis, the company reported first-quarter net profit of 38.4 billion won ($34.9 million) and operating profit of 305.2 billion won ($277.5 million), up “significantly” from the previous quarter. Consolidated revenues of 14 trillion won ($12.7 billion) were “virtually unchanged” from the year-ago period.