South Korea's LG Electronics Inc, the world's No.3 handset maker, posted an unexpected net loss for the first quarter of 2011, said that it expected its handset business to return to profit in the second half. Net loss was 14.6 million dollars year-on-year for the January-March period.
LG's phone division is expected to swing to a profit in the current quarter, boosted by new products such as Optimus 2X and Optimus Black in the high-end segment.
The mobile-phone business posted a loss for a fourth straight quarter after LG's Optimus smartphones failed to take market share from models by Apple Inc. (AAPL) and Samsung Electronics Co. LG is counting on smartphones and 3-D TVs to help Korea's second-largest electronics maker to revive profitability.
“LG Electronics expects to see solid growth in the second quarter of 2011 with the start of the high season for air conditioners, continued momentum in home appliances, and aggressive global sales of LG 3D TVs and Optimus smartphones,” LG Electronics said in a statement.
The net loss result was a surprise with five analysts polled by Dow Jones Newswires having forecast on average a net profit of KRW159.7 billion.
Read more CEOWORLD Magazine Software Reviews: Windows Backup Software, Screen Capture Software, PC Registry Repair Software, PC Backup Software and Mac Sync Software
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
