LG Electronics Q1 net profit drops 58.5pc

South Korea's LG Electronics Wednesday reported a 58.5 percent slump in first-quarter net profit as losses caused by currency swings in overseas markets offset profits from its record smartphone sales.

Net profit for January-March was 38.4 billion won ($35.9 million), the company said in a statement.

Operating profit dropped 36.2 percent year-on-year to 305.2 billion won, while sales remained unchanged at 14 trillion won.

The firm -- the world's second-largest TV maker -- said the dramatic weakening of local currencies in Europe and emerging markets like Russia and Brazil dealt a blow to its TV sales.

The firm's TV unit posted an operating loss of 620 million won in the first quarter, a big turnaround from an operating profit of 216.1 billion a year earlier.

LG's bigger rival Samsung said on the same day the weakening of the euro, real and ruble currencies had a negative impact worth 800 billion won on its first-quarter earnings.

LG's mobile unit however recorded an operating profit of 72.9 billion won, from a loss of 730 million won a year earlier, thanks to solid sales of its popular flagship smartphone G3.