LG reporting lower sales and profit slump for Q3 2015
Samsung presented great numbers for its Q3 2015 performance, but another South Korean smartphone manufacturer isn't sharing the same sentiment. LG Electronics has reported a sales drop from 14.713 billion Won in Q3 2014 to 14.028 billion Won (11.2 billion Euros) in Q3 2015 representing a fall of 4.7 percent. Operating profits have crashed from 465 billion Won to just 294 billion Won (11.2 billion Euros) during the same time frame representing a fall of 58.2 percent.
The hope of any sort of recovery has been lukewarm since Q2 2015. Net profits have fallen from 202.7 billion Won in Q3 2014 to just 124.8 billion Won (99.62 million Euros) in Q3 2015. LG's smartphone division has been doing particularly poorly as the manufacturer has shipped only 14.9 million units worldwide, which significantly lags behind Samsung, Apple, Huawei, Lenovo, and Xiaomi.
LG's Mobile Communications (MC) division reported a decline in sales from 4.257 billion Won in Q3 2014 to 3.377 billion Won in Q3 2015 representing a drop of 20.7 percent. Simultaneously, LG's mobile division reported an operating loss of 77.6 billion Won (61.94 million Euros). The Home Entertainment (HE) division had comparatively flatter results with shallower drops.
Only one division in particular showed a healthy rise for LG and that was the Home Appliance and Air Solution (H&A) unit. The Vehicle Components (VC) division is also beginning to show promise. LG was able to reduce operating loss for this unit to 800 million Won and sales have increased just slightly from 450.8 billion Won in Q2 2015 to 478.6 billion Won in Q3 2015.
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