LG Electronics presented its business data for the second quarter of 2017 and provided insights into the performance of the four divisions of the Group. Only LG Mobile generated a lower sales than a year ago. As the company stands, the premium smartphones do not sell well.
The compared to the G5 (test) significantly better G6 (test) as well as the here not officially available V20 could not lash LG’s smartphone division. According to the quarterly report, KRW’s sales were 2.7 trillion KRW (2.07 billion euros), well below KRW’s 3.42 trillion a year ago. The division’s operating loss is KRW 132.4 billion (EUR 101.35 million), which is close to the same level as in the second quarter of 2016.
With new models everything will be better
The poor performance justifies LG Electronics with higher component costs, which push the margin, and poor sales figures of premium smartphones. At LG Mobile, the G6, the V20 and perhaps also some remaining remainders of the G5. The second quarter of 2017 is the first in which the sale of the G6 is fully integrated. With the newly introduced Q-series, the G6 + and the V30 expected at the IFA, LG Electronics wants to strengthen the mobile division again. These are, however, statements that have been published for years without the hoped-for success in LG Electronics’ quarterly reports.
In the divisions Home Appliance & Air Solution, Home Entertainment and Vehicle Components, there is a turnover plus. The total turnover of the LG Electronics Group in the second quarter of 2017 is 14.55 trillion KRW (+ 4%), according to the current price of 11.14 billion euros. The net profit, due to the generally better performance of three out of four divisions, amounted to 514.9 billion KRW (+ 92%), which is currently converted to 394.16 million euros.
Source: Cubot Phones Blog