LG Electronics posts 45% drop in Q2 net profit

South Korea's LG Electronics on Wednesday reported a 45 percent drop in its second-quarter net profit owing to sluggish smartphone sales and unfavourable currency rates.

Net profit in the April-June period plunged to 226.39 billion won ($19.57 million) from 411.83 billion won a year earlier, the company said in a statement.

Operating profit dropped 60 percent on-year to 244 billion won, while sales shed 7.6 percent to 1.39 trillion won.

LG, the world's second-largest TV maker, said the second quarter was "more challenging than expected" because of a sluggish global TV market and intense competition.

But it predicted it could recover lost ground in the third quarter with new competitive products and more effective marketing initiatives.

Second-quarter smartphone shipments stood at 14.1 million units globally, down 3.0 percent from a year ago, with profitability affected by weaker demand in the premium segment at home.

The company said that in the third quarter and beyond, it would aggressively implement its dual strategy focusing on premium devices as well as mid-range smartphones targeting emerging markets.

LG shares closed the day 1.74 percent lower at 43,800 won.