Record handset sales power LG profit

Mobile handset sales have bolstered LG Electronics quarterly earnings with the South Korean vendor reporting €646 million (1.15 trillion won) in net income for the quarter to July.

The no. 3 handset manufacturer, after Nokia and Samsung, sold a record 29.8 million handsets during the quarter with high-end handsets such as the Arena performing strongly. LG reported an 11% operating profit margin in handsets, compared with 6.7% in the first quarter, when it shipped 22.6 million devices.

The vendor, which suffered two straight quarterly losses, beat analyst expectations and forecast sales for the next quarter to grow over 10% year-on-year as demand for LCD TVs and mobile phones continues to expand.

LG said in a statement that sales of flat panel TVs, were “robust”, rising 45% to 4.28 million from the same period last year.

Overall sales, including those of affiliates, increased 14%  to € 819million (Won14,500bn.)

LG’s performance outstripped those of competitors Nokia which slashed its forecast for Q2 due to the recession and rising competition in the smartphone segment.

Despite the stellar results, shares in LG Electronics fell 1.1% to close at 131,500 won.

 

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