LG reports record Q1 profits despite struggling smartphone division

The company saw an operating profit of USD 1.03 billion for Q1 2018.

Just ahead of the G7 ThinQ unveiling, LG's released its financial results for the first quarter of 2018. Looking at the company as a whole, Q1 saw total sales of USD 14.1 billion and operating profit of USD 1.03 billion.

With sales up 3.2% and profit increased by over 20% from Q1 last year, this is LG's most profitable first quarter in history and the biggest quarterly earnings since Q2 of 2009. LG attributes this success largely to its Home Appliance, Air Solution, and Home Entertainment divisions, each of which saw double-digit margins for their most profitable quarterly earnings ever.

However, things aren't so hunky-dory when it comes to the company's Mobile Communications (aka smartphone) operations.

Although losses are down compared to this time last year, sales of USD 2.01 billion still resulted in a net operating loss of USD 126.85 million. To hopefully reassure investors, LG commented –

Despite component price increases, the company shrank its operating deficit by continuing to improve its business structure. While the global smartphone market is forecast to experience stagnant growth and more intense competition in the second quarter, LG expects to see positive results with the launch of the LG G7 ThinQ flagship phone and the opening of the Software Upgrade Center to deliver higher-quality customer support.

LG's set to announce the G7 ThinQ on May 2, and while we're expecting it to be a powerful and capable phone, will it be enough to help LG stand out against competition from Samsung, Google, and Apple? Sound off with your take in the comments below.

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