LG Electronics has announced that after two consecutive quarters of net losses, it has turned the corner with a net profit of $214.9 million, a direct result of the company’s efforts to innovate in all key business units and focus on high-performing products.

Unaudited consolidated financial results, based on international financial reporting standards (IFRS) for the quarter ending March 31, showed consolidated revenues of $10.8 billion with an operating profit of $396.1 million.

This compares favorably to the consolidated operating profit of $0.25 billion for all of 2011.

LG Home Entertainment Company posted significantly improved operating profit in the quarter, compared with the same period a year ago. Sales while strong at $4.7 billion, declined by 6.8 per cent compared with the first-quarter of 2011 which is due to the sluggish European economy.

Due in large part to the popularity of new products such as Cinema Screen 3D Smart TV in the Korean market and improvements in supply chain management, operating profit nearly doubled to $191.9 million from the same period the previous year.

LG will leverage upcoming big ticket sporting events and the global roll-out of its redesigned 2012 TV models to stimulate higher demand for its home entertainment products.

LG Mobile Communications Company saw operating profit more than triple quarter-over-quarter to $34.5 million as a result of a better product mix and an increase in the proportion of smartphone sales.

Overall revenues declined 14 per cent year-over-year to $2.2 billion as a result of declining feature phone sales but smartphone revenue in-creased due to the popularity of Optimus LTE and Optimus Vu: in the home market.

The company expects to strengthen its smartphone line-up even more in the second quarter with the introduction of its L-Style series and quad-core smartphones.

LG Home Appliance Company’s first-quarter 2012 operating profit increased 48 per cent from the same period last year to $134.4 million due to higher average sales price, better product mix and cost efficiency.

A 2.7 per cent decrease in revenues year-over-year, to $2.2 billion, primarily reflected a slowdown in China and developed markets. Despite continued sluggishness in major markets and a rise in the cost of raw materials, the company will continue to efficiently allocate resources and develop differentiated products such as the blast chiller refrigerator.

LG Air Conditioning and Energy Solution Company saw operating profit more than double from the same period last year to $71.6 million due to new high-end products and cost structure improvements.

First-quarter revenues were essentially flat, declining 1.2 per cent year-over-year to $1.1 billion.

The company is optimistic that government policies to promote the usage of energy-efficient products in homes and businesses will create new growth opportunities for the company, along with highly efficient commercial air conditioners. – TradeArabia News Service