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LG Electronics says 2Q profit more than doubled

By WTOP Staff

YOUKYUNG LEE
AP Technology Writer

SEOUL, South Korea (AP) — LG Electronics Inc. reported a forecast-beating quarterly profit Thursday and gave an upbeat outlook for smartphone profitability as its mobile division ended a streak of losses.

Like other South Korean exporters, LG Electronics said the strength of the country’s currency, the won, eroded its oversea profits. Still, the company’s profit was better than expected as smartphone sales jumped to a record high and TV sales recovered ahead of the World Cup.

LG executives said solid sales of handset devices will help its mobile division stay profitable during the fall and winter, even as Apple Inc. is expected to unveil a bigger iPhone and Samsung Electronics Co. is likely to release new models.

“Even if we spend more on marketing expenses, profitability is expected to improve,” chief financial officer David Jung told investors.

The South Korean consumer electronics company said its net income for the April-June quarter was 411.8 billion won ($400 million), compared with 155.5 billion won a year earlier.

The figure was more than a fourfold increase from the first quarter and also beat expectations. Analysts polled by financial data provider FactSet forecast 300.9 billion won income.

Operating profit rose 27 percent to 606.2 billion won while sales inched up 1 percent to 15.4 trillion won.

LG said its mobile division was profitable for the first time in a year thanks to strong sales of its flagship G3 smartphones and cheaper L-series phones in North America.

It sold a record 14.5 million smartphones during the latest quarter. About one third of those were devices that run on advanced wireless networks known as LTE, which were more profitable for the handset maker.

LG brought forward the global release dates of its new phones as part of efforts to turn around the performance of its smartphone business.

The G3 smartphone was launched in South Korea at the end of May. Four major carriers in the U.S. began selling the Android-based smartphone last week after its rollout in Asia, Europe and Latin America.

Yoo Bu-hyun, head of financial planning at LG’s mobile division, said mobile carriers in the U.S. have responded very positively to the G3 and have become more willing to promote LG devices in their stores.

“I see no problem in reaching 10 million sales” of the G3, Yoo told an investor meeting.

LG’s mobile division suffered losses during the second half of last year as it boosted marketing costs to burnish its brand and attract consumers from Samsung and Apple. LG expressed confidence Thursday that its smartphone business will remain profitable.

The recovery comes as Samsung Electronics is expected to report poor financial results as the explosive growth of its smartphone sales slows.

LG also expanded its lineup of both cheaper phones and high-end handsets such as the G-Pro smartphone series that features a giant screen.

LG Electronics has tried to differentiate its products from those of Apple and Samsung Electronics, which capture most of the profit in the global smartphone market.

The G3 features a 5.5-inch display screen that packs more pixels per inch than other leading phones. LG also introduced design changes in its mobile devices, such as moving the power and volume buttons to the back of its phones.

On the television front, the world’s second-largest TV maker plans to roll out a new model later this year featuring an advanced display called OLED, which provides rich and vivid colors.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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