LG have revealed their second-quarter 2011 financial results. And while the Korean firm claim to be back on track after the recession hit profits, it seems that their home cinema products are taking a lot of the flak for faltering smartphone sales.
Profits of 158 billion Korean Won (£89 million) sees a 21% increase in profits over the previous quarter, and a 25% rise year on year. Most of this is attributed to strong sales of home entertainment gear like LED LCD TVs and 3D Cinema TVs.
“The company expects to see sales continue to rise with the anticipated strong consumer acceptance of its film patterned retarder (FPR) Cinema 3D TVs as well as smart TVs,” the LG release states.
This is sullied however by the news that the mobile arm lost 54 billion KRW, despite sales rising by 11.6%. LG remain bullish, saying:
“The company continues to strengthen its global competitiveness by launching a mix of competitive smartphones and its continued investment in R&D.
“LG Electronics expects to see modest growth year-over-year in the third quarter of 2011 with new product launches in major categories and creative marketing activities across its various 3D products, said LG
“For the long-term, the company will continue to strengthen profitability through aggressive cost innovation and strategic investments in existing as well as new business areas.”