LG Electronics reports Q3 profit jumps 87%

October 29, 2014

LG Electronics reported Wednesday an 87 percent jump in third-quarter net profit from a year ago after profits from its mobile unit surged to a five-year high.

Net profit for the South Korean electronics giant in the July-September period amounted to 202.6 billion won ($193 million), up 87 percent from a year ago, the company said in a statement.

Operating profit also jumped 112 percent to reach 461.3 billion, while sales rose seven percent to 14.9 trillion won.

The firm’s handset unit led the growth with a 39-percent rise in sales and an operating profit of 167.4 billion won — the highest for five years and a turnaround from a 79.7 billion won loss a year ago.

The handset unit sold 16.8 million smartphones in the third quarter, breaking the quarterly sales record set in the second quarter.

The world’s sixth-largest smartphone maker struggled for years with sluggish sales after making a late entry into the market following competitors like Samsung and Apple.

But LG recently showed signs of revival with its flagship G3 smartphones, while its bigger South Korean rival Samsung saw profits sag.

Samsung — the world’s top maker of smartphones and TVs — is set to post a nearly 60 percent plunge in its third quarter operating profit to be announced on Thursday, although the figure of 4.1 trillion won is still nearly 10 times bigger than LG’s.

LG’s TV unit saw operating profit inch up five percent to 130.5 billion won on growing sales of high-end sets.

LG shares rose 4.31 percent to close at 67,800 won on the Seoul stock market.

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