SEOUL, South Korea LG Electronics Inc. turned a profit in its third quarter as a result of brisk sales in the mobile communications and display sectors. However, a slowdown is expected in the fourth quarter.
Earnings for the third quarter ended Sept. 30 included net income totaling $23.7 million compared to a net loss of about $10.2 million in the previous quarter. Net profit totaled about $164.5 million.
Third-quarter sales totaled $6.34 billion, up 4.5 percent from the previous quarter and up slightly from the same quarter last year. Exports accounted for 75 percent of LG's total sales in the third quarter, the company said Tuesday (Oct. 17).
Mobile communications and digital display sales led the rebound in profits, with bookings up $31.9 million and $23.8 million, respectively. The display increase was recorded despite an equity method loss of $114 million by display subsidiary LG.Philips LCD.
Strong sales of plasma displays and LCD TVs fueled an 18.9 percent quarterly jump in display sales, which rose 28.8 percent over a year earlier.
Sales revenue for LG's mobile communications division rose 4.7 percent sequentially but fell 9.7 percent over a year ago.
LG expects slower fourth-quarter sales, cutting its sales forecast by 11 to 12 percent sequentially. It cited further declines in average selling prices for its main products due to domestic and global competition.