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LG's handset division posts loss in Q3, brings rest of company down with it

LG Optimus Black
LG Optimus Black

LG's third quarter 2011 results are in, and the handset division isn't pulling its weight. Overall revenues were down four percent, with an operating loss of $29.6 million — the kicker is that LG's mobile communications division was the only one that didn't post an operating profit. Overall mobile communications sales declined nine percent year-over-year, and the division posted an operating loss off $128.5 million. The news may worsen for LG's mobile division as the week goes on; Reuters reports that rival Samsung is expected to report a growth in profit in its handset division later this week.

It's not all bad news though; LG shipped 6.8 million flat-panel TVs in Q3, its highest volume ever — and due to a higher share of premium products like its 3D and LED TVs, profit increased 17 percent over the previous quarter. That's all good news, but it's all for naught until LG's handset division turns things around.