LG profits slump 93%

LG Electronics' 3rd quarter net profit has slumped a remarkable 93%, with the company attributing the result to currency exchange losses.

The company posted a net profit of around KRW25 billion ($24 million) - nearly $240 million lower than in Q3 2007.

These losses can be attributed largely to the depreciation of the South Korean Won. LG has been particularly hard hit because it currently owns $1.7 billion in dollar-denominated debt.

Sales and operating profit both increased 21.2% over 2007's results, although sales decreased 5% in the third quarter compared to Q2.

Market analysts were expecting the slump, but LG's result is worse than they had predicted. According to Dow Jones Newswires, analysts were expecting profits of around $85 million.

LG is also predicting there will be tough times ahead. The company expects sales growth to slow in Q4, particularly in the higher end of the market, and has elected to enter the low-tier handset market next year to combat this.