LG Electronics posts Q1 net loss on weak demand

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SEOUL, April 21 (Yonhap) -- LG Electronics Inc., the world's third-largest
cellphone maker, said Tuesday it recorded a net loss in the first quarter because
of low demand amid a global economic downturn.
Net loss reached 197.6 billion won (US$146.4 million) in the three months ended
March 31, compared to a net profit of 422.2 billion won a year earlier, the
company said in a regulatory filing. The red ink, however narrowed sharply from a
671 billion won loss three months earlier.
Sales rose 2.1 percent on-year to 7.07 trillion won, while operating profit
tumbled 22.4 percent to 437.2 billion won, it said.
Shares of LG Electronics closed at 106,000 won on the Seoul bourse, up 0.95
percent. The first-quarter results were released before the market closed.
The consumer electronics company said that it was able to cut losses from the
previous quarter due to solid performances of LCD TVs and mid-tier mobile phones.
"The company expects global demand in the second quarter to be higher as demand
for small flat panel TVs grows in emerging markets and developed markets look to
purchase second units," it said in a statement.
LG Electronics expected second quarter sales to rise, saying the decline in the
market will likely slow down though market demand is expected to shrink
year-on-year.
ygkim@yna.co.kr
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