LG Electronics logs 45 percent plunge in 2Q earnings as TV woes continue, phone recovery weak

Industries Associated Press

LG Electronics says its second quarter earnings sank 45 percent over a year earlier as losses widened in its TV business.

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The company reported Wednesday a net profit of 226.4 billion won ($195 million) for the April-June quarter, compared with 411.8 billion won a year earlier. A FactSet survey of analysts forecast 204.8 billion won profit.

Sales fell 8 percent to 13.9 trillion won and operating income declined 60 percent to 244 billion won.

Weak currencies in Europe and Russia hurt demand for TVs and profitability. LG's mobile business produced a tiny profit as it spent heavily to promote the G4 flagship smartphone in the face of Apple's iPhone and Samsung's Galaxy smartphones.

LG has been in an uphill battle in the premium smartphone market dominated by Apple and Samsung.