LG Electronics said on Thursday third-quarter operating profit jumped 45 percent as its mobile phone division narrowed losses.
A focus on sales of mid-range mobile phones and cost-reduction plans contributed to smaller losses in its mobile division, LG said in a statement.
Operating profit reached 749 billion won ($657.83 million) in the July-September quarter.
Quarterly revenue rose 1 percent to 15.4 trillion won.
The LG Home Appliance & Air Solution Company recorded third-quarter revenues of KRW 4.85 trillion (USD 4.33 billion) and operating profit of KRW 409.7 billion (USD 365.3 million). LG said that profitability remained strong and was boosted by the growth of premium appliance sales and continued cost management.
The LG Home Entertainment Company generated third-quarter operating profit of KRW 325.1 billion (USD 289.9 million) on sales of KRW 3.71 trillion (USD 3.31 billion). Even with demand for TV products in developing markets slowing, sales of premium OLED and UHD TVs remained strong. As the year comes to a close, the company plans to increase its focus on premium TV models in key markets to maintain profitability despite the sluggish overall TV market.
The LG Mobile Communications Company recorded sales of KRW 2.04 trillion (USD 1.82 billion) and operating loss of KRW 146.3 billion (USD 130.5 million). Despite the weakening demand for smartphones worldwide and increased competition, the company significantly reduced its operating deficit as a direct result of its business plan and its stronger focus on mid-range products.
The new V40 smartphone is expected to "boost sales in the fourth quarter" and help the loss-making mobile business as it seeks to return to profit, LG Electronics said.
The LG Vehicle Components Company posted third-quarter revenues of KRW 1.18 trillion (USD 1.05 billion), an increase of 41 percent compared with the same period last year and 35 percent higher than the previous quarter mainly due to increased production related to new projects and the acquisition of automotive lighting and headlight systems provider ZKW Group.
The LG Business-to-Business Company generated sales this quarter of KRW 576.7 billion (USD 514.2 million) and operating profit of KRW 35.1 billion (USD 31.3 million).