LG posted 10% jump in revenue in Q1

After eight years, LG electronics has managed to garner 10 percent year-over-year jump in revenue in Q1 result. The company has posted revenue of KRW 14.66 trillion
($12.70 billion), an increase of 9.7 percent from the same period last year, while it has doubled its operating income to KRW 921.5 billion ($ 798.3 million).

Specifically from Home Appliance and Air Solutions company posted its highest quarterly operating income in eight years.

Its Home Entertainment Company recorded its highest first-quarter operating margin of 8.8 percent on sales of KRW 4.33 trillion ($ 3.75 billion), largely due to expanding sales of premium products, improved cost structure and a more flexible strategy to deal with the increase in panel prices.

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The company also expects that TV demand in the next quarter to remain positive due to opportunities in North America, Latin America, and Asia, led by the growing popularity of premium LG OLED and Ultra HD TV products and the rollout of the new LG SIGNATURE OLED TV W.

Meanwhile, LG Mobile Communications Company reported revenues of KRW 3.01 trillion ($ 2.61 billion), an increase of 4 percent quarter-over-quarter and 2 percent year-over-year, driven by the launch of the flagship LG G6 smartphone and new mass-tier models.

The company reported smartphone shipments of 14.8 million units this quarter, up 10 percent from the first quarter of last year in large part due to the Americas. While effects of last year's reorganization are beginning to bear fruit, price competition in the mass-tier segment and competition from other flagship models are expected to increase this year.

Finally, LG's Vehicle Components Company also reported strong sales KRW 876.4 billion (USD 759.2 million), a 48 percent increase from the first quarter of 2016.

However, LG also advised that continued investments in R&D and growth are expected to continue to affect the division's profitability this year.