S. Korea's LG posts 87% drop in Q2 net profit

South Korea's LG Electronics said Wednesday that second-quarter net profit plunged 87.3 percent from a year earlier due to flagging sales of mobile phones and televisions. Net profit was 108.4 billion won ($103.4 million) in April-June compared with 856.4 billion won a year earlier. The second-quarter result, however, represents a return to profitability following two quarters of losses. "The turnaround in net profit reflected steady improvements in (our) businesses and successful cost-reduction efforts," the company, the world's third-largest mobile phone maker, said in a statement. Sales fell 0.2 percent from a year earlier to 14.4 trillion won, while operating profit rose 25.3 percent to 158.2 billion won. LG had failed quickly to roll out smartphones to rival Apple's market-leading iPhone and Samsung Electronics' Galaxy S. The company said it would see modest growth in the third quarter. "For the long-term, the company will continue to strengthen profitability through aggressive cost innovation and strategic investments in existing as well as new business areas," it said. Analysts said that after a year of struggling in the competitive smartphone market, LG is set for continued profit growth due to increased sales of smartphones and three-dimensional televisions.