Handsets batter LG profits

LG Electronics' profit crashed 99% in the September quarter on tumbling handset sales.
 
LG's quarterly profit shrank to 8 billion won (€5.1 million) from 807 billion won in 3Q09.
 
The handset division shipped 28.4 million devices - 32% fewer than in Q209. Revenue at the unit fell 30%, and it swung year-on-year to a 326 million won operating loss.
 
Earnings increased or stayed flat in every other subsidiary.
 
Mobile phone shipments declined in North America and Europe, which together account for over 50% of shipments, but increased in Korea and some emerging markets.
 
LG is looking for a holiday season bump in sales, tipping shipments to grow by high-single digits in 4Q as it begins selling its Android-based Optimus One in North America – a device that has generated strong domestic sales.
 
The vendor was widely tipped to report a loss during the quarter, but despite beating forecasts LG’s stock on the Korea Exchange fell 1.96% to 100,000 won yesterday.

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