LG turns the corner despite profit decline

From CNET News.com: LG Electronics posted a sharp decline in its second-quarter profit today, but managed to reverse a recent string of losses as its turnaround efforts begin to take effect.

The consumer electronics giant posted a profit of nearly $100 million, compared with a year-ago profit of $736 million, when it counted results from a business that it no longer has a majority stake in.

Revenue rose 7 percent to $13.3 billion.

LG has been wrestling with a combination of weaker consumer demand and company-specific problems such as its slumping handset business amid intensifying competitive pressure. The company has worked to cut costs and improve its product line-up over the past year.

LG says it expects modest year-over-year improvement in the third quarter as it introduces new products and ramps up its marketing effort for its 3D capabilities. Longer term, it expects to continue cutting costs and investing in new areas.

LG's largest unit, the home entertainment business, saw a 9 percent increase in sales thanks to stronger demand for its light-emitting diode, or LED, televisions, and healthier business in developing markets. Its operating profit more than tripled from a year ago to $83 million.

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