LG Electronics Inc posted a 25 percent fall in quarterly operating profit yesterday, hurt by the global recession, but results beat expectations on resilient handset margins and improvements in its flat screen TV business.

The world's No 3 mobile phone maker said it expected to increase total sales by more than 10 percent in the second quarter from the first, thanks to strong revenues from air conditioners. It also said it aimed to increase mobile phone sales by more than 10 percent in the second quarter from the first.

LG's improving brand image and price competitiveness from the weaker won are helping the South Korean company expand market share in mobile phones and LCD TVs at the expense of struggling foreign rivals, even in the midst of the downturn.