With weak sales in the premium smartphone market and an increase in raw material costs, the mobile business had a quarterly operating loss of KRW 132.4 billion (USD 117.3 million). The company didn't disclose sales for Q2.
Operating profit was 664.1 billion won (597.1 million USA dollars) in the April-June period, up 13.6 percent from a year earlier.
The figure managed to reach an operating loss of 200 million won in the first quarter, casting hope over a possible recovery, but the latest announcement emerged as yet another challenge for LG.More news: 34th annual National Night Out will be August 1
Revenue grew 3.9 percent over the year to 14.55 trillion won in the quarter, and net income jumped 91.7 percent to 514.9 billion won. The company also says strong sales of the Galaxy S8 boosted its mobile business to a $3.6 billion (4.1 trillion won) profit. The company lost a total of $132 million in the second quarter of a year ago as a result of the G5's lukewarm reception, but when rumors for the G6 first started pouring in, things looked like they were about to get better.
The electronics company announced its second-quarter earnings Thursday, saying the quarter was a "challenging" one for its mobile business.
After a painful 2016, the G6 was a breath of fresh air for LG. LG said the North American market remained strong, contributing a 13 percent increase in sales compared to the same period previous year thanks to strong performance of the company's mass-tier lineup.More news: What's in The Coca-Cola Co (KO) After Reaching 52-Week High?
The vehicle component unit, however, posted an operating loss of 16.4 billion won due to the ongoing investment in new businesses such as advanced driving assistance systems.
Accordingly, LG said it plans to expand sales of premium home appliances overseas to secure stable profit sources.More news: Traders Secrets on Sprint Corporation (S), QEP Resources, Inc. (QEP)
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