SEOUL: LG Electronics Inc., the world’s No. 4 mobile-phone maker, reported second-quarter profit that missed analysts’ estimates after sales of handsets lagged behind rivals.
Net income was 159 billion won ($138 million) in the three months ended June 30, Seoul-based LG said in a statement today. The average of 23 analyst estimates compiled by Bloomberg was for a profit of 278.8 billion won. Sales in the quarter totaled 12.9 trillion won, it said.
LG, which was overtaken by Apple Inc. as the world’s No. 3 handset maker last year according to market researcher Strategy Analytics, had a loss from mobile-phone sales during the quarter after further giving up market share to Samsung Electronics Co. and the iPhone maker. LG is fighting back to revive earnings with new smartphones running Google Inc.’s Android software and televisions equipped with the latest display technology.
“Sales figures for phones aren’t rising quickly enough,” Choi Nam Kon, a Seoul-based analyst at Tongyang Securities Inc., said by phone before today’s announcement. “That is forcing them to increase spending on marketing and such, so margins keep narrowing. They need to raise sales volume first.” (Bloomberg/msw)
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