LG Electronics Q1-2010 profit up slightly at $441 million
28 Apr 2010
LG Electronics, the world's second biggest TV maker, posted a slight improvement in quarterly profit as dismal performance in its struggling handset division countered the impact of strong sales of flat-screen TVs, fridges and washers.
The South Korean firm reported a global-basis operating profit of 489 billion won ($440.5 million) in January-March, versus 467 billion won a year ago.
Strong sales of flat-screen TVs should drive earnings growth at LG this year as consumer spending improves in a global economic recovery. However, the overall outlook for the company, also the world's third biggest handset maker, hinges largely on when and how strongly its handset division regains its lost momentum.
LG trails Nokia and Samsung Electronics Co Ltd in mobile phones and competes with Sony Corp and Panasonic Corp in flat-screen TVs.
LG's business momentum has turned weaker since late last year as its handset unit struggled due to delayed product launches, a lack of hit models and a slow response to the booming smart phone market, in which LG has less than 1 per cent global market share.
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