LG Electronics sees increase in Q2 profit despite mobile business loss

Source: Xinhua| 2017-07-27 16:27:02|Editor: Zhou Xin
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SEOUL, July 27 (Xinhua) -- LG Electronics, South Korea's tech giant, saw an increase in its second-quarter operating profit despite mobile business loss that was offset by outperformance in home appliances business, the company said Thursday.

Operating profit was 664.1 billion won (597.1 million U.S. dollars) in the April-June period, up 13.6 percent from a year earlier.

Revenue grew 3.9 percent over the year to 14.55 trillion won in the quarter, and net income jumped 91.7 percent to 514.9 billion won.

LG's mobile business posted operating losses for the ninth consecutive quarter due to weak sales of its flagship G6 smartphone and rising marketing expenses.

The mobile communications division, which makes smartphones, logged an operating loss of 132.4 billion won on revenue of 2.7 trillion won in the second quarter, down 21 percent from a year earlier.

The mobile unit's loss tumbled to 0.2 billion won in the first quarter, but it increased again to hundreds of millions of dollars in the second quarter.

It was offset by the outperformance of the company's home appliances unit, which recorded an operating profit of 465.7 billion won on revenue of 5.25 trillion won.

The figures of the unit, which makes refrigerators, washing machines and air conditioners, accounted for the largest share of LG's total earnings for the second quarter.

The home entertainment division, which produces TVs, posted 343 billion won in operating profit on revenue of 4.23 trillion won thanks to solid demand for premium products.

The auto parts-making business registered an increase of 38 percent in the second-quarter revenue compared with the same quarter of last year. The revenue stood at 882.6 billion won.

The vehicle component unit, however, posted an operating loss of 16.4 billion won due to the ongoing investment in new businesses such as advanced driving assistance systems.