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LG Electronics Q2 profit surges 165%

LG Electronics posted a 165 per cent surge in second-quarter net profit Thursday (July 24) from a year ago, on solid TV sales and a dramatic turnaround in its long-troubled mobile unit.

SEOUL: LG Electronics posted a 165 per cent surge in second-quarter net profit Thursday (July 24) from a year ago, on solid TV sales and a dramatic turnaround in its long-troubled mobile unit. Net profit for the South Korean electronics giant in the April-June period amounted to 412 billion won (US$399.8 million), LG said in a statement.

Operating profit also soared 26.5 per cent for the previous year to 606 billion won, while sales rose 0.9 per cent to 15.37 trillion won. Operating profit of the firm's TV unit -- which accounts for the lion's share of LG's overall sales -- rose 65 per cent on-year to 154.5 billion won, LG said, adding its TV sales remained nearly unchanged at 5.09 trillion won. The firm noted the popularity of its ultra high-definition TVs in key markets.

LG's handset unit also recorded a dramatic turnaround with an operating profit of 85.9 billion won after racking up losses for three past consecutive quarters. The world's fifth-largest smartphone maker struggled for years with sluggish sales after making a late entry to the market following competitors like Samsung. But the firm recently showed signs of revival, shipping a record 14.5 million smartphones in the second quarter, a 20 per cent increase from a year ago.

"Much of the success was due to the initial popularity of the LG G3 in the Korean market and strong sales of L series smartphones," it said. LG's latest flagship smartphone, the G3, won rave reviews after its launch in May.

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