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Life's not good for LG as profits slump

A loss in LG Electronics' mobile communications division has resulted in further losses in the third quarter of this year, which has affected the company's overall performance for the period.

The division lost 77.6 billion won ($68 million) in the third quarter of 2015, its first loss in more than a year, which has brought the company's overall net income down to 83.7 billion won ($73 million), 48 per cent lower compared to its year-ago period results. Operating profit also slumped 37 per cent to 294 billion won.

The company's earnings were a far cry off from financial data provider FactSet's analysts estimate of 146.5 billion won.

Revenue during the period also dropped 4.7 per cent year-on-year to 14 trillion won.

The South Korean firm said that while it shipped 15 million smartphones during the quarter, it could not command high prices. LG expects its mobile business to improve its performance in the last leg of 2015, relying on the company's and the division's positive results from sales of the V10 smartphone and the Nexus 5X smartphone.

LG's other business divisions provided positive results: its TV business turned profitable for the first time in the year and its home appliance business contributed more than 80 per cent of overall profit.

Image Credit: Shutterstock/Goran Bogicevic