CFO says company is  developing proprietary mobile application processor


LG Electronics said it reached 448.2 billion won ($392.7 million) in operating profit for the first quarter, up 243 percent from the same period last year, boosted by its sales of premium goods.

The local electronics giant’s operating profit is also more than 18 times the 23 billion won recorded in the fourth quarter of last year, according to its company officials.

The firm, however, posted about 12.22 trillion won in total sales during January-March, down 7 percent from the same period last year due to sluggish economic conditions especially in European markets.

But its net profit during the first quarter jumped back into the black, passing 242 billion won, sharply surging from minus 111 billion won posted in the last quarter of 2011.

“We’re catching up more quickly in handsets and gained confidence with the LTE handsets,” said the firm’s chief financial officer Jeong Do-hyun. “In terms of mobile operating systems, we plan to focus on (Google’s) Android.”

When looking into the performance of the company’s business sectors, it sold a total of 13.7 million units of handsets in the first quarter, which cut it sales 10 percent compared to the previous quarter.

“We’re making moves to develop our proprietary mobile application processor and add mobility and flexibility with our own AP solution. It’s in the research and development stage,” said Jeong.

The firm’s air-conditioning and energy solution unit’s operating profit topped 80 billion won, the biggest figure since it was launched as an independent business unit last year.

The firm’s home entertainment business unit, in charge of TV sets, also recorded 5.33 trillion won in sales and 217 billion won in operating profit ― the highest operating profit figure in the previous 10 quarters.

LG’s home appliance division also contributed to the operating profit increase, driving the figure up 49 percent from the same period last year.

Its sales also rose 5 percent from the same term partly due to the release of new high-capacity appliances such as the 870-liter high-performing side-by-side refrigerator and the 19-kilogram capacity drum washer TROMM 6 Motion, company officials said.

By Cho Ji-hyun (sharon@heraldcorp.com)