The South Korean electronics maker recorded KRW15.23 trillion (AU$14.7 billion) in revenue for the three-month period ended 30 June, a 10.1 per cent increase over the same period last year, on strong sales in most of LG’s business units. The company’s US$426.9 million operating profit was up 40 per cent year over year, while its US$139 million net profit was up slightly compared with the second quarter of 2012. Both increased from the previous quarter.
The company’s mobile unit notched revenue of US$2.78 billion, up 34.5 per cent from the same period a year earlier. The unit’s operating profit increased year over year to US$54.3 million, but declined compared with the previous quarter on weaker demand on its home turf, lower average selling prices and higher marketing investments.
The company expects sales growth to be boosted by L-Series II and F-Series smartphones, while high-end models such as the such as G Pro and LG G2 are expected to improve LG’s competitive profile. LG is expected to unveil the G2 flagship smartphone at a press event in New York on 1 August.
The company’s home entertainment unit recorded revenue of US$4.9 billion, up 6.4 per cent over the previous quarter, but flat year over year on increased competition and lower demand. On continued global market weakness, the company plans to focus on expansion into Ultra HD TV and OLED TV markets.
LG’s home appliance unit notched record quarterly revenue of US$2.8 billion, a 10.9 per cent increase year over year on strong sales in the United States and China. Meanwhile, the company’s air conditioning and energy solutions unit also reported record revenue of US$1.5 billion, and 18.4 per cent increase over the second quarter of 2012 and a 42.5 per cent increase over the previous quarter.