LG’s Q3 handset sales and profit down over Q2

LG Electronics Co. Ltd. faces fierce competition in the United States, despite the handset maker’s devotion to serving the carriers’ needs, according to the vendor’s latest financial results.
The proportion of the handset maker’s global shipments destined for the U.S. dropped in the third quarter from more than one-third of total output to less than one-third (37% to 32%). The share of total shipments increased to Central and South America and to the Middle East and Africa. This shift may reflect LG’s push to increase volume shipments in emerging markets.
Volatility continues to characterize the vendor’s handset-related sales and profit. Handset sales reached $2.7 billion in the third quarter, up slightly from the year-ago quarter’s $2.6 billion, but down sequentially from the second quarter’s $3 billion, according to the company.
Profit at the company-$228 million in the third quarter, up from the year-ago quarter’s desperately flat $28 million-reflected a righting of the ship, but was down sequentially from the second quarter’s $341 million.
The company reported it shipped nearly 22 million units in the third quarter. While no year-ago quarter comparison was given, Strategy Analytics has reported that LG shipped 16.5 million units in third-quarter 2006. That would give LG a 25% year-on-year growth in shipments.