LG Electronics reports Q3 profit on handset earnings

South Korean electronics maker posts net profit of $138 million, a dramatic swing from a $366 million loss a year ago.

LG Optimus L9
LG Electronics' Optimus G smartphone Lynn La/CNET

LG Electronics said today it swung a third-quarter profit based largely on the success of its once-ailing handset division.

South Korean electronics maker posted a net profit of 157.1 billion won ($138.5 million) for the three months ended September 30, a dramatic recovery from the loss of 413.9 billion won ($366 million) it recorded in the year-ago period. However, third-quarter revenue fell 4 percent to 12.38 trillion won ($10.93 billion) due to a decline in demand for feature phones.

LG's mobile division recorded a third-quarter profit of 22 billion won ($19.4 million), compared with a 138.8 billion won ($125.8 million) loss a year earlier, thanks largely to the sales of LTE-enabled smartphones. Overall, the company shipped more than 14 million handsets, a 9 percent increase over the previous quarter. The company also credited sales Optimus L series phones with contributing to profits.

Once the world's third-largest cell phone maker, LG has suffered in recent years as consumers flocked to Apple's iPhone and Samsung's Galaxy smartphones. However, the company expects its Optimus G and Optimus Vu II will help it gain ground in the high-end smartphone market.

Profit from the home entertainment division, which competes with Samsung and Sony in the TV sector, recorded an operating profit of 88.6 billion won, unchanged from a year earlier.

LG shares were up 2 percent following the company's earnings announcement, following a 26 percent run-up during the past quarter on mobile sector optimism.

Tags:
Mobile
LG
Samsung
About the author

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers.

 

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