LG Electronics’s first-quarter operating profit rose to its highest in nearly eight years, the South Korean company said Thursday, citing strong television and appliance sales. In the previous quarter, the company posted its first quarterly operating loss in six years.
In Q1 2017, LG reported profit of 922 billion won ($816 million USD), up 82 percent from a year ago. Revenue was in line with LG’s estimate, rising 9.7 percent to 14.7 trillion won (12.95 million USD). “We expect a high-single digit increase in revenue in Q2 versus the previous quarter,” LG said in its earnings document.
The firm’s mobile division, however, reported a 200 million ($1.76 million USD) won operating loss in Q1, its eighth-straight quarter in the red. That being said, mobile sales were up two percent year-over-year, with smartphone shipments coming in at 14.8 million units, up 10 percent year-on-year.
Losses in the mobile division are expected to narrow as the company’s 2017 flagship LG G6 reaches a wider audience, given that the smartphone has only been on the market since March. So far, the G6 has been well-received by critics; MobileSyrup‘s review called the device “an outstanding premium tier smartphone.”
Analysts say that LG’s overall earnings will also likely improve throughout the rest of the year as the company continues to push high-end appliances and television products.
Source: LG
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