LG Electronics said Wednesday its quarterly profit plunged 59 percent as losses from TVs offset a modest improvement in its smartphone business. The company announced unaudited first-quarter net profit of KRW 38.4 billion (USD 34.91 million) and operating profit of KRW 305.2 billion (USD 277.45 million), up significantly from the previous quarter. Consolidated revenues of 13.99 trillion (USD 12.72billion) were virtually unchanged from the same period a year ago as soaring smartphone sales were offset by modest revenue declines in TVs.

The LG Home Entertainment Company reported first-quarter revenues of KRW 4.44 trillion (USD 4.03billion), a 5 percent decline from a year ago. Operating margin was lower than the same period last year as unfavorable currency exchange and seasonality resulted in declining revenues from LCD TVs in North America, Europe, CIS and Latin America compared to the previous quarter. LG expects that a stronger focus on 4K Ultra HD and OLED TV marketing and increasing demand in Asia and North America for all TV products to improve the outlook for the LG Home Entertainment Company in the second quarter.

The LG Mobile Communications Company recorded a strong first quarter 2015, shipping 15.4 million smartphones, an increase of 26 percent compared with the same period last year. Sales of KRW 3.6 trillion (USD 3.27 billion) were up 5 percent from the first quarter last year, while operation profit margins improved both quarter-over-quarter and year-over-year. Sales in North America increased by a 66 percent from the same period of 2014, while sales in Korea grew 57 percent from the previous quarter with the introduction of the G Flex2 premium smartphone featuring a unique Plastic-OLED display. LG puts hopes in the launch of the LG G4 in the second quarter.

The company's home appliance division that sells air conditioners, refrigerators and washing machines was the most lucrative business for LG during the quarter. Home appliance sales were also hurt by the strengthening of the South Korean currency but the company said profit improved because it sold more high-end products in South Korea.