LG Profit Falls, TV Business Weighs
LG Electronics Inc.’s first-quarter net profit slumped 91 percent from a year earlier, weighed down by the lackluster performance of its television business, but the company predicted a better second quarter with the global rollout of its latest smartphone.
As the TV business continues to suffer from thin margins due to stiff competition, LG Electronics is betting on its mobile business to drive earnings growth in the coming quarters. The company plans to take a more aggressive approach this year on marketing spending and expand the number of its retail stores in emerging markets, as it seeks a stronger global presence in smartphones. Analysts say it will take a couple of years for the company to see any meaningful profit from its next-generation TV models using organic light-emitting-diode displays.