LG Electronics sees profit fall in Q3 on higher deficit in smartphone business

LG Electronics, South Korean tech giant, recorded a decline in its third-quarter operating profit as deficit in smartphone business expanded, a regulatory filing showed on Thursday.

Operating profit was 283.2 billion won (249 million U.S. dollars) in the July-September quarter, down 3.7 percent from a year earlier. From the previous three-month period, the profit tumbled 51.6 percent.

Revenue slumped 5.7 percent over the year to 13.22 trillion won in the September quarter. Net income posted a deficit of 81.5 billion won, turning into the red from a profit of 124.8 billion won a year ago.

The weak performance came as its mobile phone business posted an operating loss of 435.4 billion won on revenue of 2.52 trillion won.

The revenue was down 23.3 percent compared with a year earlier on soft premium product sales and lower smartphone prices.

The South Korean company's smartphone sales reached 13.5 million units globally in the quarter, down 9 percent from a year earlier.

Revenue in the TV-making unit shed 3.4 percent to 4.14 trillion won on lower product prices, but the division's operating profit hit a quarterly high of 381.5 billion won on the back of high-priced premium TV sales.

Operating profit in the home appliance and air conditioners division jumped 39.6 percent to 342.8 billion won on demand for premium products, while its revenue increased 2.8 percent to 4.27 trillion won. Endit