LG Q1 fiscal results: profit is good, but mobile division still lagging
LG Electronics posted its Q1 financial numbers and it had the best result in almost a decade. Sadly, the Mobile Communications division wasn"t a big part of that as its revenue only rose 2% YoY.
Total smartphone shipments were up 10% on a yearly basis to 14.8 million units. It was mostly mid-range smartphones like the K-series that bumped those numbers. Because of the slow LG G5 sales and the niche LG V20, the division still lost KRW200 million or $176,000 between January and March. That"s still huge progress over the previous quarter that saw the mobile division bleed over $1 billion.
LG’s expects to post profits in Q2 2017 thanks to the LG G6. The company realizes that the competition in the mid-end class is fierce, but it expects to maintain its position there.
Consolidated operating profit reached an 8-year peak of KRW921.5 billion, or about $811 million, so it"s great news for the company. Here"s hoping that the Mobile division goes back in the black next quarter as well.
