South Korean tech giant LG has announced its financial results for the second quarter and first half of 2019. The result show record-high performance in some aspects but the mobile phone division still disappoints.
The report shows that sales of the company’s product in H1 2019 went down 21.3%, compared with the same period last year. However, on a quarterly basis, sales were up 6.8%. LG gave the reason for the poor H1 2019 result to be the aggressive pricing by Chinese competitors.
Specifically, the Mobile division recorded second-quarter 2019 sales of KRW 1.61 trillion (USD 1.38 billion), 21.3 percent lower than the same period last year due to stagnant demand in the smartphone market and continued aggressive pricing by Chinese brands. Sales increased 6.8 percent from the first quarter but the business united reported an operating loss of KRW 313 billion (USD 268.4 million) as a result of higher marketing investment to support the launch of new models and additional costs related to relocating smartphone production to Vietnam.
EDITOR’S PICK: Grab 50% Off Daily on High-End Electronic Products on Gearbest
The Home Appliance & Air Solution Company reported record sales of KRW 6.10 trillion (USD 5.23 billion) in the second quarter, the highest for the business unit in the history of LG Electronics. Revenue growth was especially strong in Korea and regions such as North America, Europe and the Middle East, increasing 16.1 percent from the second quarter of 2018. Operating income of KRW 717.5 billion (USD 615.3 million) was the highest ever for the April-June period.
Overall, the company’s financial result was 4.1% higher in sales and 15.4% in operational income. The business unit recorded strong profitability on the back of stable growth, increased sales of high demand products such as air conditioners and continuous cost reduction activities.
UP NEXT: Samsung Galaxy Tab S6 launched: Packs Dual rear cams, Fingerprint-on-Display, and SD855 SoC
(source)
