LG reported its second quarter earnings today. Thanks to price pressure in two of its core businesses (LCDs and phones) the statement has more red ink than LG executives were hoping. The company actually posted a loss for the second quarter, its first in the past 10 quarters. LG is the fourth largest phone manufacturer, but its handset division is actually losing money because of the intense pricing pressure. LG is hoping the launch of its Chocolate line on Verzion Wireless will boost its earnings for the second half of the year.
Figures from the Q1 2006 release:
With the 15.3 million shipment figure, LG has dropped to the fifth largest manufacturer, since Sony Ericsson reported sales of 15.7m units. Sony Ericsson had a bang up quarter based on its hot selling Walkman line of devices.