South Korea's LG Electronics Inc posted a higher-than-expected quarterly operating profit as strong flat-screen TV sales offset sluggish earnings from mobile phones.

LG, the world's second-biggest TV brand and No.3 mobile phone maker, reported on Wednesday a 446.7 billion won ($385.4 million) operating profit for October-December, higher than a forecast for 355.5 billion won from Thomson Reuters I/B/E/S.

The result, which reflects earnings from LG and its overseas units, compares with a 101.4 billion won profit in the year-ago quarter and 850.2 billion won earned in the previous quarter.

LG said late on Tuesday its fourth-quarter net profit was 297.2 billion won, well below a forecast for 412.7 billion won from Thomson Reuters I/B/E/S. Healthy demand for LCD TVs and air conditioners will likely bolster LG's earnings in the first half, but tougher competition in smartphones, where LG has a relatively weak line-up, and a rising won currency could weigh. Shares in LG, which competes with Samsung Electronics Co Ltd in mobile phones, TVs and appliances, slipped to a near 2-month low on Wednesday, while Samsung has been near all-time highs thanks to a strong outlook for its memory chip business.