Feeds

LG back in black after six-month cash bleed

Business picks up in tellies and mobes

Boost IT visibility and business value

After two quarters of losses, LG Electronics has pulled itself out of the doldrums with a net profit of ₩243bn ($213m, £131m) in the first quarter of this year.

The Korean electronics firm lost ₩16bn ($14m, £8.6m) in the same quarter last year and ₩112bn ($98m, £60.6m) in the fourth quarter of 2011.

Appetite for its new Cinema Screen 3D Smart TV at home helped its telly business improve, with an almost doubled operating profit from the previous quarter – despite the fact that sales were down a little because of reduced demand in Europe.

LG is also doing well again in mobiles, with that business seeing an operating profit of ₩39bn ($34m, £21m), up from a loss of ₩101bn ($88.5m, £54m) in the same quarter last year. However, again, sales were down from the previous year, although LG claimed that was down to feature phones, while smarphones were up.

Both strategies show a refocusing on the high end of the markets – 3D TVs and smartphones – in order to try to recoup LG's lost ground in the telly and mobile sectors.

As a Korean company, LG is also benefiting from the strong yen, which means its exports to Japan are pummelling Japanese rival product-makers as well as creating space in the market for its products.

The company is expecting demand for LCD TVs to pick up in the next quarter, with the London Olympics forecast to "stimulate overall demand growth both quarter-on-quarter and year-on-year".

LG also expects good things in the mobile market.

"Although total demand for handsets is not expected to grow fast, continuous growth for the smartphone market is expected, especially for LTE phones in the developed countries with the European market planning to commercialise LTE," the firm said.

However, the firm also warned that the economic recession would remain a negative aspect for the electronics market. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.