LG Electronics has released its first quarter results for 2014, revealing 319 per cent growth in net profit as compared to last year.
Net profit for Q1 came to KRW92.6 billion (US$86.62 million), and operating profits to KRW504 billion (US$471.47 million), with LG attributing its first quarter success to a spike in profitability from the LG Home Entertainment Company.
Unaudited revenues increased 1.2 per cent year-on-year to KRW14.27 trillion (US$13.35 billion), LG said.
LG’s Home Entertainment unit saw revenues rise three per cent as compared to Q1 2013, reaching KRW4.95 trillion (US$4.63 billion), and achieved an operating profit of KRW240.3 billion (US$224.79 million) fuelled by strong sales of large televisions and helped by cuts in materials costs.
The company said it expected the Home Entertainment unit’s revenues to continue increasing in the second quarter as new model launches take place, while it is also looking to diversify its premium television offering prices to offset any competition.
LG Mobile Communications Company saw smartphone shipments soar 19 per cent higher than last year’s Q1 figures, shipping 12.3 million units in the first quarter of 2014, achieving revenues of KRW3.41 trillion (US$3.19 billion) – a six per cent increase on 2013 Q1 revenues.
Five million LTE smartphones were shipped in Q1 2014, setting a new record for the most ever LTE units shipped in one quarter period, and showing 79 per cent growth year on year. LTE units accounted for 41 per cent of smartphone shipments in the first quarter, as compared to 2013 when LTE units made up 27 per cent of all smartphones shipped across the year.
In the Home Appliances Company first quarter revenues decreased slightly to KRW2.72 trillion (US$2.54 billion), which LG said was due to unfavourable foreign exchanges in developing markets, as well as increased competition in the United States of America.
Nonetheless, operating profits for Q1 came to KRW109.20 billion (US$102.15 million), achieving a four per cent margin.
Finally, LG’s Air Conditioning and Energy Solutions Company saw strong uptake of commercial air conditioners in international markets, contributing to revenues of KRW1.22 trillion (US$1.14 billion) in the first quarter, and operating profits of KRW89.8 billion (US$84 million) – an increase of almost 10 per cent as compared to Q1 2013.
