LG Electronics posts second successive quarterly loss
South Korea's LG Electronics, the world's third-largest mobile phone maker, on Tuesday posted its second consecutive quarterly net loss as the recession cut demand for handsets.business Updated: Apr 21, 2009 12:50 IST
South Korea's LG Electronics, the world's third-largest mobile phone maker, on Tuesday posted its second consecutive quarterly net loss as the recession cut demand for handsets.
Foreign exchange losses in the first quarter of 315.5 billion won (233 million dollars) on overseas debt, as the won slumped against the dollar, also contributed to the shortfall.
The company reported a net loss of 197.6 billion won in January-March compared to a net profit of 422.2 billion a year earlier.
Its operating profit, on a parent basis, fell 23 percent year-on-year to 437.2 billion won.The firm said it expects second-quarter sales to expand over 10 percent compared with the first quarter.
"With the start of the high season for air conditioners and the introduction of new products in major categories, the company expects sales to expand over 10 percent quarter-on-quarter," it said in a statement.
LG Electronics also forecast that despite the recession its handset shipments would rise more than 10 percent quarter-on-quarter by focusing on high-end products.