Seoul, South Korea – LG Electronics reported a first quarter net
profit on lower sales as demand for flat-panel TVs grew while the handset
market lagged.
Net profit was $607 million, up from a loss of $180 million from
the prior year. Sales were $12.3 billion for the quarter, ended March 31, up
3.7 percent from the prior year’s opening quarter.
By sector, LG’s home entertainment recorded a 20.5 percent gain
in sales and an operating profit of $163.9 million, compared with a loss of
$900,000 in the first quarter of last year.
LG reported LCD TV shipments were up 62 percent year on year
while PDP TV shipments grew 36 percent in large screens.
In mobile handsets, sales were down 19.7 percent in the quarter
compared with last year, with operating profit at $25.2 million, down from $224
million in the prior year.
North American sales declined due to a demand shift to
smartphones, LG reported.
In home appliances, sales were up 8 percent, with operating
profits at $186.4 million, up from the first quarter of last year, which
reached $119.8 million. Much of the sales growth was sparked demand in North
America and Asia, with China
leading with 8 percent year-on-year growth.
