LG reports 33% decline in quarterly profits
7/28/2010

(MENAFN) South Korea's LG Electronics announced its second-quarter earnings results, with its net profit plunging 33 percent year-on-year on a loss in handset business, AP reported. LG, in its regulatory filing, reported sales amounting to $12.4 billion and operating profit of $108 million, while its net profit stood at $736 million, down 33 percent from a year ago. LG's earnings shock 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 that put the market into a shock, the company expects to see modest growth in the third quarter of 2010 on the back of the continuing global economic recovery.