[By NBC-1TV H. J Yook]LG Electronics (LG) today reported a solid first-quarter performance due to a resurging handset business which shipped 10.3 million smartphones between January and March, the highest for LG since it entered the smartphone race. Better-than-expected performance in LG’s mobile operations offset weaker results in the home entertainment business.

First-quarter operating profit of KRW 350 billion (USD 322.88 million) and net profit of KRW 22 billion (USD 20.30 million) declined somewhat from the same period last year. However, revenues in the first quarter rose 6.8 percent year-over-year to KRW 14.10 trillion (USD 13.01 billion) mainly due to the improved performance of the mobile business.

LG Home Entertainment Company revenues of KRW 5.17 trillion (USD 4.77 billion) declined year-on-year due to lower sales of plasma TVs and IT products. Sales of LCD TVs increased in Europe and developing markets such as China and CIS from the same period last year. Operating profit of KRW 30 billion (USD 27.68 million), although lower than last year, increased compared to the previous quarter. Although TV and IT market will continue to be stagnant, LG expects stronger results with the rollout of new 3D Smart TVs and ULTRA HD TVs.

LG Mobile Communications Company results improved significantly in the first quarter, recording revenues of KRW 3.21 trillion (USD 2.96 billion) on smartphone shipments of 10.3 million units, an increase in revenue of 28.5 percent from the same period last year. Healthy sales of LTE smartphones such as the Optimus G and Optimus G Pro along with 3G smartphones including the Optimus L Series and Nexus 4 contributed to the improved results. Operating profit increased almost four-fold from the same period last year to KRW 133 billion (USD 122.69 million) thanks to stronger revenue and better cost structure. The company expects to further increase shipments and sales in the second quarter with the worldwide rollout of Optimus L SeriesII targeting 3G markets with the 5.5-inch Full HD IPS Optimus G Pro and Optimus F Series in countries with 4G LTE networks.

LG Home Appliance Company sales in the first quarter of 2013 increased 11 percent from the same period last year to KRW 2.81 trillion (USD 2.59 billion), largely due to improved sales in the United States, Central America and the Middle East. A 29 percent decrease in operating profit year-over-year to KRW 102 billion (USD 94.10 million) reflected increased investments in R&D and marketing. LG will focus on strengthening its competitiveness and market leadership in a weak worldwide market with differentiated products and a strengthened product line-up.