LG might be churning out smartphones and other impressive pieces of hardware year in and year out but this has not stopped the company for having a bad financial report to write about for the third quarter of the year (Q3) business hour. Although LG has managed to remain a profitable business, the gradual decline in its revenue base and the steep fall in the amount of units that it converts into cash might see the company knocked off its financial base if extra measures are not taken.
After suffering a decline of 48% year on year, the hit can be represented in figures as being a reduction to 83.7 billion won of their originally buoyant financial scale. Even though FactSec which is a financial analytic body had already projected a high sales and high earning period for LG, taking it far by reporting that LG would post earnings of about 146.5 billion won, this report did little to justify what is happening in the present. Even more disheartening is the total sales which dropped by 5% to 14 trillion won.
The badguy that should take the fall for this drop in profit is LG’s mobile phone department which despite the amount of shipments made ( 15 million ), there was an unprecedented 77.6 million won drop in the revenues that these shipments brought back in.
With the LG V10 now out there and the Nexus 5X pleasing the market, we can hope for a better Q4 earnings report from LG.
Via: Big Story