LG believes that it has turned the corner, with sales of flat panels and operating profits up and optimism that an 'aggressive' product line-up in televisions will drive profits.

The company as a whole saw its first operating profit since early 2010, although investments in affiliated companies brought a net loss of 16 billion Won (£9m).

The Home Entertainment arm posted a revenue decrease of 4.8 per cent year-on-year – with the company blaming slower demand and average selling price decline.

Turnaround

However, LG is confident that its 'Cinema 3D' TV range and Smart TVs will be leading the turnaround for the company.

"Thanks to cost-cutting efforts, the company saw progress in its turnaround quarter-over-quarter, posting a KRW 82 billion (USD 73.1 million) operating profit in the first quarter," said LG

"An aggressive product line-up, led by CINEMA 3D TVs and Smart TVs, is expected to continue to drive profits and expand market share for the Home Entertainment business."

Mobile steady

LG also pointed to 'significant improvement' in operating profits for its mobile arm, despite a decrease in revenue on the same period in 2010.

"While overall handset shipments declined quarter-over-quarter as a result of slow seasonality, operating profit showed sig-nificant improvement in the first quarter due to an increase in smartphones in the company's portfolio and reduction in overhead costs," added LG.

"The company expects to improve its product mix by launching new smartphones including the LG Optimus Black and the LG Optimus 3D and gain profitability by further cutting costs."