LG Electronics, the world’s 3rd largest handset maker, announced Thursday that their 3rd quarter profit experienced a 99% drop from a year earlier, pointing out the dramatic decline in both handset business and consumer electronics in the US and European market.

The company declared a net profit of 7.57 billion South Korean won ($6.7 million) this quarter, a plunge from the 911.3 billion won last year. Operating loss amounted to 185.18 billion won, a backslide from 81 billion won a year back. Sales also took a 2.1% step back, from 13.72 trillion won to 13.43 trillion won.

“In particular, we look for a considerable operating loss of 415 billion won in the fourth quarter of 2010, due mainly to rapidly increasing costs in handsets, a fall in the global TV demand and an intensifying price competition in home appliances,” said Nomura in a recent report.

LG is likely to continue suffering from operating losses until the first quarter of 2011 providing the high cost on marketing, research and development, in the course of cellphone price regression, analysts said.  Amid the rapid increase in popularity of smartphones and business depression, the company’s former CEO Nam Yong resigned from position. A member of the founding family of broader LG conglomerate Kon Bon-joon led the company effective Oct. 1.

Life’s been a rollercoaster for LG, with a number of setbacks and opportunities bringing mixed results for the electronics manufacturer.  LG is one of the first in line to develop a Windows Phone 7 device, but stepped away from its Android Froyo tablet development earlier this year.