LG's mobile division returns to profitability

Ships 7 million smartphones in Q3

LG's mobile division returns to profitability
LG has reported "better-than-expected" financial performance from its mobile business for Q3 2012, as the division returns to profitability.

LG Mobile Communications Company posted an operating profit of $19.9 million for the quarter, and shipped a total of more than 14 million handsets worldwide.

7 million of these handsets were smartphones, and they account for more than 70 percent of the division's revenues.

In Q2 2012, LG's mobile division posted an operating loss of $51.6 million.

Looking ahead

LG attributes this upturn to "healthy sales of LTE smartphones in Korea, Japan and the United States," as well as the expansion of the its Optimus L-series into 3G markets.

In fact, this return to profitability actually coincides with increased expenses in marketing and R&D. However, LG believes an "improved product mix and cost structure" helped the division to overcome these expenses.

Moving forward, LG's forecasts suggest the division will remain profitable in Q4.

The company expects both demand and competition to increase over the holiday season, but notes that it is planning "aggressive marketing activities" to promote its Optimus G and Optimus Vu:2.

[source: Reuters]

Staff Writer's news editor 2012-2013