LG made more money in Q3 as mobile losses shrink slightly
LG is a profitable company overall, reporting growing profits almost every quarter. However, LG's mobile division has been an anchor around the company's neck. LG mobile still isn't profitable in the just-released Q3 results, but the losses have lessened. LG thinks it can turn the corner and start making money on smartphones again, but it's not exactly within striking distance of that goal.
LG reports that it saw an operating profit of $667.7 million last quarter, a 45% year-over-year increase. As usual, the home appliance and entertainment divisions are responsible for the bulk of that with profits of $365.3 million and $289.9 million, respectively. Mobile lost $130.5 million during the quarter, but it had the second highest sales of LG's four major divisions. The higher revenues along with business changes resulted in a reduction in losses. Mobile lost LG $171.95 million last quarter, and Q3 2017 had losses of $331.37 million.
LG points to smartphone market saturation and competition from Chinese OEMs as major challenges that have kept its phones from being profitable. LG plans to continue focusing on the mid-range, but it also promises the new LG V40 will improve its Q4 results. We will have to see about that.
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