LG Electronics posted sales of W13.89 trillion and an operating profit of W218.7 billion in the third quarter, it said Thursday. Sales were down 8.8 percent from the previous quarter, while operating profit declined by a whopping 54.6 percent (US$1=W1,063).
The disappointing results were attributed to its weak phone business, which suffered an operating loss of W79.7 billion on sales of W3.45 trillion due to the cost of marketing its latest smartphones.
The company said it was pinning the fate of its phone business on the G2, its flagship new smartphone that was released in August. It also plans to release a curved phone before the end of the year.
"Fundamental competitiveness is more important than short-term gains or losses," said Park Jong-seok, president of LG's mobile communications. "The G2 is getting a good response in the market, so we believe the figures will turn around in the fourth quarter."