LG's profit for Q2 2015 down 60%, TVs and smartphones to blame

LG's second quarter financial results are out and the numbers look grim. The company reports its lowest quarterly operating profit since Q4 2013 - KRW244 billion ($211 million) is down 60% from KRW610 billion the previous year. Compare that to initial analyst estimates, which pointed to a KRW395 billion figure.

Despite remaining the world number two TV manufacturer, LG is struggling in that department, where it registers a KRW 82.7 billion ($71.5 million) loss. A year before, the division was twice that in profit, though the downward trend was already rather obvious with a $5.4 million loss last quarter.

Meanwhile, LG's mobile communications division is barely in the black, reporting a KRW 0.2 billion profit - some $173,000, not enough for a mid-level exec's yearly salary.

The future is also not looking good, analysts report, as the smartphone market is getting increasingly crowded and LG is failing to stand out. Shrinking global TV sales aren't helping either, with the issue worsened by narrow profit margins due to weak currencies in emerging markets.

Source | Via