LG sees huge year-on-year profit increase in Q1 2017 earnings report

LG has released its consolidated earnings report for Q1, 2017, revealing strong growth on the same period last year.

Net profit stood at 835.7 billion won ($737 million) for Q1, 2017 compared to 198 billion won ($175 million )in Q1, 2016. That’s a significant year-over-year increase, helped by LG’s Home Appliance department, which saw a 10% year-over-year increase with sales generating 4.64 trillion won ($40.9 billion).

Operating profit hit 921.5 billion won ($812 million) during 2017’s first quarter, up from 505.2 billion won ($445 million) in Q1, 2016, though LG is slightly down on Q4, 2016 in operating income and net profit (which was 956.7 billion won ($843 million) and 1.1 trillion won ($970 million), respectively). Seasonal sales will have increased profitability in that quarter, however.

Meanwhile, LG’s Mobile Communications sales were up 2% year-over-year in the first quarter of 2017, helped by the launch of the LG G6. Smartphone shipments came in at 14.8 million units during the period, up 5% quarter-on-quarter and 10% year-on-year. Despite this, LG’s mobile business posted an operating loss of 200 million won.

LG’s mobile sales, then, seem to be doing all right — even in light of the slowing growth in the smartphone market and strong competition (LG didn’t launch its latest flagship in the massive Chinese market because of the OEM competition there). But, as was the case for its mobile unit in 2015 and 2016, it just can’t seem to turn a profit from it.

Finally, company-wide LG sales brought in a total of 14.6 trillion won ($123 billion), up 10 percent year-on-year.