A visitor walks by an advertisement of LG Electronics' product at an electronic shop area in Seoul, South Korea, Thursday, July 26, 2018. LG Electronics says its second-quarter net profit has dropped 43 percent as its mobile business has logged a bigger loss. (AP Photo/Lee Jin-man)

LG Electronics' net profit falls 43 percent on mobile loss

July 26, 2018 - 4:47 am

SEOUL, South Korea (AP) — LG Electronics said Thursday its second-quarter net profit dropped 43 percent as its mobile business logged a bigger loss, offsetting profit growth in TV sales.

South Korean consumer electronics maker LG said that its April-June earnings were 283 billion won ($253 million), compared with 498 billion won a year earlier.

It was much lower than the market consensus of 446 billion won, according to financial data provider FactSet.

Sales rose 3 percent to 15 trillion won ($13.4 billion) while operating profit rose 16 percent to 771 billion won ($689 million).

LG's mobile business posted a deeper operating loss during the second quarter as its device sales declined amid sluggish growth in the global smartphone market. It spent more on marketing to promote its new G7 smartphone. It was the fifth straight quarterly operating loss for its mobile division.

LG has been betting on vehicle components for new growth. It said uncertainty in the global auto and auto components markets will likely continue due to U.S. trade policies. Its vehicle components business has posted quarterly losses for more than a year.

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