LG has announced its second quarter results for 2011.
And the good news for the firm is that profits are now back in the black, with some aggressive cost-cutting and sales of high-end TVs having positive effects on the company’s bank balance.
For Q2 ending June 30th, LG reported revenues of $13.3 billion, which was up 9.3% on the previous quarter.
While the last two quarters have seen the company post a loss, this time LG announced positive net profits of $100 million, not a massive amount but a gain nonetheless. Operating profit was $146 million, up 25% year-on-year.
The company said it had “reduced losses” on handsets, so the mobile picture still wasn’t great, but the TV arm of the business turned in higher profitability.
LG specifically cited higher revenues from its LED LCD TVs and also new Cinema 3DTV range, along with general business growth in developing territories.
And it’s predicting the strengthening of 3DTV and net connected TV sales, noting in a press release: “The company expects to see sales continue to rise with the anticipated strong consumer acceptance of its film patterned retarder (FPR) Cinema 3D TVs as well as smart TVs.”
We’re still not convinced that 3DTV is going to be blazing a trail into many more living rooms this year, but we shall see. Smart TVs, certainly…
As for phones, LG Mobile recorded a loss of $50 million, although there was a 12% uptick in sales in comparison to last quarter, so some good news.
In the home appliance department, there was also some growth with an operating profit of $47 million and record quarterly sales up 6% on this time last year. However, gains were held back somewhat by increases in raw material prices.