LG Electronics' Q2 net profit down 33% on last year
LG Electronics has reported Q2 sales amounting to $12.4billion and operating profit of $108m, while its net profit stood at $736m, down 33% percent from a year ago.
The South Korean manufacturer's slump was mainly attributed to the loss made in mobile communications, which saw an operating profit in negative territory for the first time since 2006 due to investment in R&D and expansion of channels in emerging markets for future development.
Despite the poor performance, the company expects to see modest growth in the third quarter of 2010 on the back of the continuing global economic recovery.
"LG will continue to introduce new products in major categories including smart phones, while investing aggressively in R&D and marketing and developing premium products in order to secure a stronger position in respective categories," the company said in a press release.
