SEOUL, KOREA –
LG Electronics posted a net
loss in the first quarter as its home entertainment
and mobile electronics sectors reported lower
LG reported a corporate net loss of 16 billion Korean
won compared with a 675 billion won profit in
the year-ago quarter. Net sales for the quarter were
LG Electronics Posts Net Loss In Q1
13.16 trillion won, almost flat with the prior year’s
13.22 trillion won.
Operating income was 131 billion won, down 73
percent from the prior year’s 481 billion won.
Home entertainment segment sales were 5.28
trillion won, down 4.8 percent year on year and operating
profit was 82 billion won, down from 150
billion won year on year.
In home entertainment, LG reported unit sales of
flat panel TVs up 13 percent during the quarter but
revenue declined year on year due to a slower season
and decreased prices. Plasma TVs showed growth
in the U.S. and LG expects the marketing of Cinema
3D and Smart TV products, expanding market share
of “customer friendly products” will help sales and
“continuing cost cutting efforts” will help profitability.
Mobile communications sales were 2.91 trillion
won, down 8.3 percent year on year and the segment
had an operating loss of 101 billion won compared
to a year-on-year operating profit of 28 billion
Unit shipments of handsets declined 10 percent
year on year, but North America showed strong
sales of its Optimus One/2X phones. LG hopes to
return to profitability in the second half with new
smartphone introductions and cost cutting.
Home appliance sales were 2.69 trillion won, up
13.4 percent year on year, but operating profits
were down by about half to 103 million won. Rising
sales in North America was one factor in higher
overall sales for the segment.