LG Electronics reports better than expected profits
The South Korean electronics giants LG Electronics have reported a better-than-expected improvement in its profit figures for the last quarter. The company saw a growth in profits by almost 91 percent. This was mainly due to improvement in sales of its mobile phones and flat screen venture.
The company is also expected to do well this year as well as the market analysts recently claimed that they have overtaken the giants in the LCD market Samsung with their collaboration with Philips. However, they might suffer a bit as spending on marketing would result in higher expenses as the company is trying to expand their market share in the mobile phone market around the world.
LG Electronics posted a net profit of around $318.1 million in the quarter ended December 2005. However, they noticed a minor fall in sales figures. The company reported that they sold 16.2 million mobile phones in the fourth quarter compared to 15.5 million units in the third. They might fail to match these figures, as their partners would be clearing up their inventories this quarter to order newer phones in the coming months.