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LG Electronics posts 19% increase in Q2 profit

By AFP

Added 28th July 2016 04:04 PM

The company produces a range of products from mobile phones to televisions and home appliances including air conditioners, washers and refrigerators.

LG Electronics posts 19% increase in Q2 profit

The LG Electronics headquarters in Seoul. Photo/AFP

The company produces a range of products from mobile phones to televisions and home appliances including air conditioners, washers and refrigerators.

Sales of popular home appliances and televisions offset slumping smartphone sales at South Korea's LG Electronics, which reported a sharp increase in second-quarter net profits on Thursday.

Net income for April to June amounted to 268.5 billion won ($238.5 million), up 18.6 percent from a year earlier and 36 percent from the previous quarter, the Seoul-based company said in a statement.

The company produces a range of products from mobile phones to televisions and home appliances including air conditioners, washers and refrigerators.

Operating profit also rose 140 percent on-year to 584.6 billion won, while sales inched up 0.6 percent to 14 trillion won.

The company attributed the growth to robust sales of high-end TVs and home appliances, especially for corporate clients worldwide as well as consumers in European and Asian markets.

Operating profits at the home appliance division grew by 50 percent on-year, while the TV unit showed a dramatic turnaround from a loss of 82.7 billion won a year ago to operating profit of 356.7 billion won.

Both units also reported operating margins of about nine percent in contrast to its chronically lossmaking handset unit.

The handset unit has spent lavishly to promote its latest flagship smartphone called G5 since its launch in April, but racked up an operating loss of 150 billion won as sales sagged.

The company warned of "more competitions ahead" in the third quarter as rivals like Samsung and Apple are expected to roll out new smartphones.

LG has struggled for years to increase its smartphone sales after a late entry into the market and has since found itself hemmed in by emerging Chinese rivals such as Huawei and Lenovo.

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