LG Q1 2019 profits down 20.8% YoY due to weak smartphone sales

LG Electronics has reported revenues of 14.92 trillion won (US$ 13.27 billion) for the first quarter that ended March 31st, 2019, which is down 1.3% compared to the same quarter last year, as expected. It posted profits of 900.6 billion won (US$ 801.25 million), down 18.7% YoY, while net profit was down 20.8% YoY to 578 billion won. Decrease in profits is primarily due to lackluster sales in mobile business. "Although overall first-quarter revenues and operating income declined somewhat in 2019 versus 2018, the home appliance company reported record first-quarter sales and profits. Operating income was 1,090 percent higher than the fourth quarter of 2018, reflecting improved cost structures across major business units," said LG. Mobile Communications sector reported a quarterly revenue of 1.51 trillion won (US$ 1.34 billion), down 9.8% QoQ and 29.2% YoY due to sluggish demand in the smartphone market and global expansion strategy of Chinese companies. The Mobile sector posted a operating loss of 203.5 billion won (US$ 181.05  million), compared to loss of 131.8 billion won a year ago and 318.5 billion won loss it posted in Q4 2018 as a result of stronger business structure. LG expects V50 ThinQ 5G smartphone to create positive momentum in the second quarter while the ...