LG claims it has 'turned corner'

LG - optimistic
LG - optimistic

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.


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."

Patrick Goss

Patrick Goss is the ex-Editor in Chief of TechRadar. Patrick was a passionate and experienced journalist, and he has been lucky enough to work on some of the finest online properties on the planet, building audiences everywhere and establishing himself at the forefront of digital content.  After a long stint as the boss at TechRadar, Patrick has now moved on to a role with Apple, where he is the Managing Editor for the App Store in the UK.