Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
LG Electronics' OLED 55-inch-wide (140-cm) and just 0.16 inches (four mm) thick television/AFP

Kenya

LG Electronics net profit down 91 percent

LG Electronics' OLED 55-inch-wide (140-cm) and just 0.16 inches (four mm) thick television/AFP

LG Electronics’ OLED 55-inch-wide (140-cm) and just 0.16 inches (four mm) thick television/AFP

SEOUL, Apr 24 – South Korea’s LG Electronics Inc. said Wednesday its first-quarter net profit fell 91 percent from a year earlier, due to lacklustre TV sales and losses from investments in affiliates.

The world’s number two TV maker posted a net profit off 22.1 billion won ($20 million) for the first three months of the year, compared to 247.5 billion won in the same 2012 period.

A surge in handset sales was more than offset by price cuts that scythed down the profit margins in its crucial television division.

Like a number of export-focused South Korean manufacturers, the company also suffered from currency rate changes that lent Japanese rivals an important edge.

Operating profit fell 13 percent to 349 billion from 402.7 billion won a year earlier, while revenue was up 6.8 percent at 14.1 trillion won.

The net income figure was below the average 235.8 billion won forecast in a Dow Jones Newswires poll of analysts.

Analysts said in order to drive its future earnings growth, LG needed to deliver a satisfying next-generation smartphone model in the second half of this year.

LG recently released a variation of its flagship Optimus G model, called Optimus G Pro, in South Korea and Japan. The device will be released in the United States in May.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...