LG Electronics, the consumer products giant said yesterday that net income fell 99 percent to 7,57billion ($ 6.7 million) in the third quarter, when he had a record operating losses due to deficiencies in their business mobile. Sales fell 2.1 percent to 13.43 trillion.
The mobile phone division was in trouble due to late entry into the smartphone LG, while earnings from its TV operations have been affected by increased competition.
LG is world No. 2 maker of television sets and No. 3 producer of mobile phones.
After the disappointing results of the second quarter, LG had pulled the plug Yong Nam, CEO, who resigned Sept. 17 to take responsibility for poor business performance. He was replaced by Koo Bon-joon, who is the younger brother of Koo Bon-Moo, President of LG Group, in an effort to transform the company. Recently it has appointed new heads of television and mobile phone divisions. Analysts said LG has been slow to respond to growing global demand for smartphones.
The company reported an operating loss of 185 Billion compared with a profit of 851 Billion a year ago.
The operating loss in the mobile phone industry has reached a record 304 Billion, and margins fell from 10.2 percent a negative effect that increased spending LG developing and marketing costs support of its segment with mobile phone problems.
LG hopes its new smartphone model, Optimus One will reverse the downward trend in the coming months.