LG Electronics has reported revenues of 15.12 trillion won (US$ 14.1 billion) for the first quarter that ended March 31, 2018, which is up 3.2% compared to the same quarter last year. It has posted profits of 1.11 trillion won (US$ 1.03 billion), up 20% YoY, highest first-quarter profit and revenue in company history and the highest quarterly profitability since the second quarter of 2009.
The LG Home Appliance & Air Solution Company and the LG Home Entertainment Company reported their largest quarterly operating profit ever with each recording double-digit operation margins.
Mobile Communications sector reported a revenue of 2.16 trillion won (US$ 2.01 billion), down 26% QoQ and 27.7% YoY due to revised smartphone launch strategy. The sector posted a operating loss of 136.1 billion won (US$ 126.85 million), compared to loss of 0.1 billion won a year ago, but it is less 36% compared to previous quarter, despite component price increases, by continuing to improve its business structure.
It shipped 11.4 million smartphones in the quarter, down 18% QoQ, and 23% YoY. While the global smartphone market is forecast to experience stagnant growth and more intense competition in the second quarter, LG expects to see positive results with the launch of the LG G7 ThinQ flagship phone and the opening of the Software Upgrade Center to deliver higher-quality customer support.