LG just posted their Q2 2012 financial results, reporting a 46-percent year-over-year increase in net profits for the quarter. Although LG as a whole saw strong growth, the mobile division of the company didn't fare quite as well. Here's the breakdown.
- Operating loss of KRW 57 billion (USD 49.48 million) for Q2.
- Overall revenues down 28.5-percent year-over-year to KRW 2.32 trillion (USD 2.01 billion).
- Smartphone shipments lifted to 44-percent of unit sales, which is up 36-percent from Q1.
LG's mobile division is hoping to improve its position in the coming quarters by leveraging their strength in LTE phones. They plan to specifically target the expanding LTE markets in North America and Europe.
You can take a look at the full press release after the break.
Source: LG Newsroom
LG ANNOUNCES SECOND-QUARTER 2012 FINANCIAL RESULTS
Solid Performance in Home Appliance and Home Entertainment
Helps Offset Difficult Quarter in Mobile Phones
SEOUL, July 25, 2012 –- LG Electronics (LG) today reported a 46 percent increase in net profits for the second quarter of 2012 versus the same period a year ago. Despite the continuing recessionary conditions, LG’s operating profit in the most recent quarter increased significantly year-over-year. Stronger performance in home entertainment and home appliances compared to the second quarter last year helped offset profit declines in LG’s mobile business.
Due to a combination of more premium products, strategic focus on developing markets and aggressive cost reductions, second-quarter net profit increased 46 percent year-over-year to KRW 159 billion (USD 138.02 million) while operating profit more than doubled to KRW 349 billion (USD 302.95 million) from the same period last year. Revenues, while 5.2 percent higher than in the first quarter, declined from last year’s second quarter by 10.6 percent to KRW 12.86 trillion (USD 11.16 billion) due to declining feature phone sales and weak demand for IT products.
LG Home Entertainment Company posted significantly improved operating profit in the quarter compared to the same period in 2011. Due in large part to an increase in sales of more premium products and improved supply chain management, operating profit more than doubled to 216 billion (USD 187.5 million) year-over-year. Sales declined 5.8 percent from the same period a year ago to KRW 5.48 trillion (USD 4.76 billion) but increased 2.8 percent from the first quarter of 2012. LG’s popular CINEMA 3D TVs will continue to drive sales in the second half as it pushes ahead to become the top global seller in the 3D segment.
LG Mobile Communications Company, after a positive first quarter, struggled somewhat in the most recent quarter with an operating loss of KRW 57 billion (USD 49.48 million) mainly due to greater marketing expenses related to new model launches in the quarter. Overall revenues declined 28.5 percent year-over-year to KRW 2.32 trillion (USD 2.01 billion) as a result of shrinking feature phone sales but smartphone shipments rose to 44 percent of unit sales, up from 36 percent the previous quarter capitalizing on LG’s strength in LTE phones. The company is planning to introduce new LTE models in the second half in developed 4G regions including North America and parts of Europe and Asia.
LG Home Appliance Company saw its second-quarter 2012 operating profit nearly triple to KRW 165 billion (USD 143.23 million) from the same period last year thanks to a better product mix and improved cost efficiency. Revenues also increased year-over-year to KRW 2.88 trillion (USD 2.50 billion) from growth in developing markets. The company still expects improved results in the second half compared to the previous year despite ongoing weak demand in developed markets.
LG Air Conditioning and Energy Solution Company posted operating profit of KRW 70 billion (USD 60.76 million), a 17 percent increase year-over-year. Revenues increased 21 percent quarter-to-quarter but declined year-over-year to KRW 1.47 trillion (USD 1.28 billion) due to weak residential conditioner sales in Korea and low demand in developed markets. However, profitability improved year-over-year led by higher contribution from system air conditioner sales. The company will focus on improving profitability by introducing more energy-efficient products and by accelerating growth in its commercial air conditioner systems business.
2012 2Q Exchange Rates Explained
LG Electronics unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2012. Amounts in Korean Won (KRW) are translated into US Dollars (USD) at the average rate of the three month period in each corresponding quarter: KRW 1,152 per USD (2012 2Q) and KRW 1,084 per USD (2011 2Q).
Earnings Conference and Conference Call
LG Electronics will hold a Korean language earnings news conference on July 25, 2012 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow on July 26, 2012 at 10:00 Korea Standard Time (01:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at 13:30 on July 25, 2012. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142660# when prompted.

Review: Caseology’s Nano Pop is the best slim but sturdy Galaxy S21 case
There’s a mountain of Galaxy S21 cases out there for you to choose from, but Caseology finally brought over one of its iPhone-only series and it is 100% worth your attention and money. Make the S21 pop with bold colors and soft but secure grip.

How Google could improve Android apps for everyone, according to devs
When Android 12 finally arrives this fall, we want our favorite apps to be ready for it. There are a few ways Google could help make that happen.

Google Pixel 4a review, 6 months later: Still the best camera under $400
It turns out Google's "less is more" approach really fits well within the constraints of a less-expensive phone, and its strengths in software and camera processing stand out against less-refined competition. The Pixel 4a picks up right where the 3a left off, with better specs, the same great camera, and a $50 lower price.

The LG Velvet is stunningly gorgeous, so get a case to keep it that way
It can be tough to find a great case for a new phone, especially one with a unique and wonderful design like the LG Velvet. But thankfully, there are a lot of solid choices out there and these are our favorites to keep your LG Velvet safe from when life happens.