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

MarketsAssociated 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.

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.

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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.