LG Electronics has just reported its Q3 2016 earnings with profits falling over 50% from the previous quarter due to declining sales and operating losses from the mobile division. Year-over-year, operating profit fell only 3.7% due to the strong performance of their home appliance unit.
The company as a whole reported a KRW 283.2 billion (USD 252.7 million) operating income, down from 584.6 billion (USD 503.10 million) in Q2. The declines in the July-September quarter are chalked up to Mobile Communications Company revenues being 23% lower than in the previous year.
Revenues were KRW 2.5 trillion (USD 2.3 billion) while there was a quarterly operating loss of KRW 436.4 billion (USD 389.4 million). At fault are lower sales of premium devices and other expenses related to ” business structure improvement activities.”
North American shipments were actually up 14% in the second quarter with 13.5 million smartphones shipped. Going into the holiday season, LG is focussing on the LG V20 announced last month and mass-tier K and X series devices. The division will also continue finalizing business structural improvements.
The Home Entertainment group reported its highest operating profit at KRW 381.5 billion (USD 340.4 million) due to increased sales of premium LG OLED and Ultra HD TVs in key markets around the world. Home appliances and vehicle components also saw a rise that helped offset o.