Having failed to post a quarter profit since Q1 2010, LG's (SEO:066570) mobile division continues to struggle posting a KRW 53.9 billion ($51 million) operating loss in Q2 2011.

The latest slump comes despite a rise in smartphone shipments – 24.8 million units in total, up 50 percent on the previous quarter - with the South Korean firm pointing to a “relative decline” in sales of its features phones” as the main reason behind the disappointing quarter.

The figure compares favourably to the same quarter last year, however, when the firm's mobile division posted a net loss of KRW 119 billion ($113.4 million).

Ups and downs

Sales were also down, from KRW 3.4 trillion ($3.2 billion) in Q2 2010 to KRW 3.25 trillion ($3.1 billion) in the latest quarter.

Nonetheless, despite the overall slide, figures for the division came in above estimates by analysts, who – according to Bloomberg – had collectively predicted a loss of KRW 80.2 billion for the quarter.

In response, analysts have welcomed the figures, stating they show a narrowing of losses at the company as it continues its transition from feature phones to smartphones.

As a whole, LG Electronics posted a KRW 158 billion ($150.5 million) operating profit in Q2 2011, up 25 percent year on year.

"LG Electronics fared well despite slower demand for consumer electronics amid the recent global economic recovery," said senior spokesman Oh Sea-chun.

"The second half will even be better than the first because our smartphone business has shown clear signs of recovery."

[source: Bloomberg]