What you need to know
- LG's smartphone division reported sales of $1.27 billion in Q3 2019, down from $1.82 billion in the same period last year.
- Compared to the second quarter, operating loss of the business division narrowed down to $135 million.
- LG Electronics posted consolidated revenues of $13.15 billion and an operating profit of $654.4 million during the quarter.
LG Electronics today announced its financial results for the third quarter of 2019. Driven by strong sales of its OLED TVs, the company posted record-breaking revenues of $13.15 billion and an operating profit of $653 million during the quarter. While operating profit increased by 4.4% compared to the same period last year, revenue rose by 1.8%.
The increase in sales was mainly due to the strong performance of the company's home appliance, home entertainment, and business solutions divisions. LG's home appliance division registered a 10 percent increase in sales compared to last year, while the home entertainment division saw revenue rise by 3.5% from the same period in 2018.
The company's mobile division, however, saw revenue decline to $1.27 billion during the period, down from $1.82 billion last year. On the bright side, the smartphone business was successful in reducing the operating loss to $135 million, thanks to production efficiencies and cost improvements. In the previous quarter, the division had reported an operating loss of $268.4 million.
LG is now focusing its attention on increasing the sales of its dual screen 5G phone lineup and plans to expand its presence in markets such as Europe, aiming to benefit from the U.S. ban on Huawei. The company's latest dual screen phone, the G8X is set to go on sale in the U.S. from November 1.