LG Electronics 1Q profit sinks 60 percent as TV losses offset phone recovery

Markets Associated Press

LG Electronics Inc. says its quarterly profit plunged 59 percent from a year earlier as losses from TVs offset a modest improvement in its smartphone business.

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The Korean company said its January-March net profit fell to 38.4 billion won ($36 million) from 92.6 billion won a year earlier. Sales were flat at 14 trillion won while operating profit slumped 37 percent to 305 billion won.

Its TV business lost money as weak currencies in emerging markets sapped demand.

LG sold a record high number of smartphones but its mobile profit was thin. Even after selling 15.4 million smartphones, up 26 percent, the division's operating profit margin was just 2 percent. Apple's margin was more than 20 percent while Samsung's was about 10 percent.