updated 06:18 am EDT, Wed April 24, 2013
Plasma TV, IT sales affect LG home entertainment division revenues
LG has seen an erosion of profits in the first quarter, according to the latest quarterly results. Operating profits fell 22 percent to $322.8 million compared to the first quarter of 2012, with net profit also falling 91 percent year-on-year to $20.3 million, though both are an improvement from the $100 million operating profit and the $427 million net loss of the previous quarter.
Sales of LCD TVs have increased in Europe and developing markets, though the company found its home entertainment division seeing a smaller year-on-year revenue of $4.77 billion, due to lower sales of plasma TVs and IT products. LG hopes the rollout of new smart 3D TVs and UHD TVs will bring stronger results in future quarters.
Mobile revenues hit $2.96 billion for the quarter, a year-on-year increase of 28.5 percent. High sales of the Optimus G, Optimus G Pro, Optimus L series, and the Nexus 4 made smartphone shipments hit 10.3 million units, with the operating profit for the mobile section seeing an almost four-fold increase compared to Q1 2012 at $122.69 million.
The home appliance section saw an 11-percent increase in sales for the quarter, reaching $2.59 billion, thanks to improved sales in the US, Central America, and the Middle East. Despite this, increased research and development costs as well as marketing has brought the unit's operating profit down by 29 percent to 94.1 million. LG's air conditioning and energy unit earned revenues of $1.14 billion for the quarter.