LG reports profits in TV and smartphone markets

SMILEY FACED FIRM LG has a kept its smile by posting profits in its mobile and home entertainment divisions.

The firm made a profit of 12bn Korean Won for its mobile communications division, thanks to strong sales despite a drop in shipments to 17.7 million. Its home entertainment business that is focused on TVs had a profit of 150bn Won for the last quarter, a growth of 17.6 per cent quarter on quarter.

LG put its good performance in mobile sales down to "improved product mix with strong premium smartphone sales from the OptimusLTE and solid sales growth from existing smartphone models".

Sales of home entertainment and mobile communication products both rose, with figures of 6.31tn Won and 2.78tn Won, respectively. Sales of its air conditioning products hit a low for the year at 0.68tn Won.

In terms of operating income LG made 23bn Won, a massive change from its 246bn Won loss in the fourth quarter of 2010. However, it reported a net loss of 122bn Won in Q4 2011. This is a considerably smaller loss than the same quarter in 2010, which was 256bn Won.

LG said its outlook for 2012 is positive with a plan to focus on strategic markets in the mobile sector and to "expand smartphones, especially on LTE". It said demand for home entertainment will increase with the London Olympics and analogue TV broadcasting coming to an end.

"Also, increased 3D content is likely to trigger 3D and Smart TV demand with stronger competition among TV makers," it said in its report.

At this year's consumer electronics show (CES), LG unveiled a 55in OLED TV and one powered by Google's software. We expect to see new smartphones from the company at this month's mobile world congress (MWC). µ