LG scores a record-breaking quarter, seemingly confirms even more LG G3 variations
Just as it was speculated several months ago, LG's second financial quarter was more than good for the company. It seems that the tech giant has scored some pretty good results during the previous trimester, as it has sold roughly 14.5 million smartphones, a third of which are LTE-enabled ones. This is a 20% increase in comparison with the same period year-over-year and a 17% upward spike compared to Q1 of 2014 - a record-breaking result for LG.
What's more, the company's profits have increased around 16% to $3.51 billion, which is apparently LG's best result since Q1 2010. The operating profits have climbed up to 83.4 million, which puts “an end to three consecutive quarters of losses”, as LG states. Without a shadow of doubt, the LG G3 is the main culprit for these impressive financial results and the company will surely rely on it in the foreseeable future, as well.
In order to ensure that the following trimesters will score similar (if not better) results, LG claims that it will be further expanding the availability of the G3 across the globe. What's interesting here is that the company says that apart from the recently-unveiled G3 Beat (also known as the LG G3 s) and the fresh Snapdragon 805-equipped LG G3 Cat. 6, it is planning to introduce even more variations of the LG G3 in H2 2014. We suppose that the G3 Lite, G3 Vigor, and the G3 Vista might be among the new devices that LG seemingly hinted. More representatives of LG's L series will also see the light of day.
So, times are definitely good for LG at the moment, and we can only hope that this upward trend will continue to go... well, upwards.
source: LG via Android Central
The LG Home Entertainment Company saw steady performance with second-quarter revenues of KRW 5.09 trillion (USD 4.94 billion), a 3 percent increase quarter-over-quarter and almost unchanged from the same quarter 2013. Operating profit of KRW 154.5 billion (USD 150 million) was an increase of 64.9 percent from the same quarter last year as a result of better product mix and lower fixed costs. Demand for Ultra HD TVs in key markets will continue to drive LCD TV revenue growth. The B2B market, led by monitors and digital signage, also is expected to contribute to LG’s growth in this segment.
The LG Mobile Communications Company shipped a record-high 14.5 million smartphones in the second quarter, a 20 percent increase year-over-year with LTE products accounting for more than one-third of all LG smartphones sold this year. As a result, sales increased 16 percent from the same period last year to KRW 3.62 trillion (USD 3.51 billion), the highest since the first quarter of 2010. The mobile division’s operating profit of KRW 85.9 billion (USD 83.4 million) in the second quarter put an end to three consecutive quarters of losses. Much of the success was due to the initial popularity of the LG G3 in the Korean market and strong sales of L SeriesIII smartphones. LG plans to continue its global rollout of the G3 and introduce more mass tier products in the second half, including variations of the LG G3, such as the recently announced G3 Beat, and additional L Series models.
The LG Home Appliance Company reported strong sales in the Korean market with sales increasing 9 percent from the same quarter the previous year. Second-quarter revenue of KRW 3.03 trillion (USD 2.94 billion) was 5 percent lower compared with the same period last year due to unfavorable foreign currency exchange movement especially in developing markets. An improvement in cost structure resulted in the LG Home Appliance Company recording operating profit of KRW 97.8 billion (USD 95.0 million) and profit margin of 3.2 percent. LG expects revenues and profitability for home appliances to increase in the second half due to the launch of market-leading washing machine and refrigerator products and the effect of cost reductions.
The LG Air Conditioning & Energy Solution Company recorded steady sales of commercial air conditioners and new products such as dehumidifiers with revenues of KRW 1.64 trillion (USD 1.59 billion) and operating profit of KRW 164.2 billion (USD 159.4 million) in the second quarter. Despite slightly lower revenues than the same period last year, an improved product mix resulted in a profit margin of 10 percent in the second quarter, and second-half results are expected to benefit from increased demand in the Middle East, rollout of additional variable refrigerant flow (VRF) air conditioning products and stronger cost competitiveness in commercial air conditioners.
2014 2Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2014. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,030 per USD (2014 2Q).
Earnings Conference and Conference Call
LG Electronics will hold a Korean language earnings conference on July 24, 2014 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow the next day on July 25, 2014 at 10:00 Korea Standard Time (02:00 GMT/UTC). Participants are instructed to call +82 31 810 3070 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at 14:00 on July 24, 2014. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142740# when prompted.
1. NoFanboy (Posts: 233; Member since: 18 Nov 2013)
Good job LG you deserve it. People are still finding out how good the g2 was.
10. Jeremy75 (Posts: 2; Member since: 24 Jul 2014)
G3 it's just the best phone in 2014 for almost all the reviewers...
13. chunky1x (Posts: 254; Member since: 28 Mar 2010)
Not really the best. It is a little behind in some areas when compared to the S5 and the price for the unlock version is almost the same as the S5 considering that the latter has waterproof and better camera. However, this certainly one of the top tier phones this year so far.
21. FTWGT86 (Posts: 10; Member since: 06 May 2014)
The S5 is water resistant not water proof, there's a huge difference.
22. Brosepower (Posts: 35; Member since: 21 Apr 2014)
Well the reviewers say and rate it at the top. If you check out any major tech website it is consistently rated as the top phone. Phonearena, verge, engadget, forbes, trustedreviews, and many others all rate it at the top. So... it kind of is...
14. cezarepc (Posts: 586; Member since: 23 Nov 2012)
We haven't seen:
-next gen iPhone
-Galaxy Alpha/Beta/Charlie/Prime whatever
-next Xperia flagship
..I'm saving my judgement until all of these are out
17. chunky1x (Posts: 254; Member since: 28 Mar 2010)
Yes. There is a strong possibility because of shorten product cycles. 6 months cycle to be exact. Samsung was the first one to do it(S4 to S5). LG and Sony said they would do this. Also some prime version will also come in both LG and Samsung this year.
25. DONUT (Posts: 307; Member since: 27 Jun 2013)
LG 6 month cycle is G series and G Pro. We will see the G Pro 3 next not the G4
28. PeterK. (Posts: 118; Member since: 13 Nov 2013)
Are you 100% sure that the Galaxy S5 came out just 6 months after the Galaxy S4?
4. Alex123 (Posts: 227; Member since: 17 Oct 2012)
Congrats LG and keep it up!
G3 is just a perfect package to me.
5. lee480 (Posts: 177; Member since: 24 Sep 2012)
What's the point selling that much smartphones when LG cant even make a cent of profit? LG have been bleeding money since they started their smartphone business.
7. Japultra (Posts: 27; Member since: 16 May 2014)
I don't think you read the article properly.
8. Canaan (Posts: 131; Member since: 25 May 2014)
As the other member said you must have not read the whole article as it clearly states that they finally made a profit.
11. GreekGeek (Posts: 844; Member since: 22 Mar 2014)
The G3 was a bit underwhelming, people quickly jumped into the hype.
Display quality (yes, the display quality) and battery life leaves somethingto be desired
12. pyradark (Posts: 781; Member since: 10 Jun 2012)
Lol!!! Sony got 4.6B profit for 9M sold unit
20. Jeremy75 (Posts: 2; Member since: 24 Jul 2014)
what f..ing are you sayng..
Sony sold 8.8M of smartphone in Q1 2014 but operative profit is around 250 M$ for all the fiscal year (Apr 2013 - March 2014) for all the business division (mobile, Home entertaiment, music, etc)
Which is quite poor compare to the fact LG gained almost 90 millions$ in one quarter only with mobile business..
LG mobile is most profitable than Sony by far..
27. justsayit (Posts: 227; Member since: 09 May 2013)
because sony phone is overpriced!
i can get a g2 for 350USD \
at the same prrice range,i only can get the horrible xperia z for 450USD if from sony
18. zinger69 (Posts: 41; Member since: 13 Feb 2014)
I'm still loving my G2, and I'm strongly considering getting a G3. Nice job LG!
23. Canaan (Posts: 131; Member since: 25 May 2014)
It seems rather compact considering its screen size. The Galaxy S5 is practically as tall as the G3 despite it (S5) having a 5.1 inch screen, though the G3 does look slightly wider.
24. ThreeFourSeven (Posts: 34; Member since: 23 Nov 2011)
I'm happy for LG cause I remember a specific company saying you can't make money using Android because of Samsung.
26. BobbyDigital (Posts: 585; Member since: 29 May 2014)
Great going LG! My favorite tech company(along with Google). I love my G2 and will definitely be getting the G3!