LG Electronics today reported a solid third-quarter performance with
the third consecutive quarter of positive net income. The
better-than-expected performance in the mobile and home appliance
businesses helped offset a decline in overall year-over-year sales
for the third quarter.
Third-quarter net profit of KRW 157 billion (USD 138.57 million)
with operating profit recording KRW 221 billion (USD 195.06 million)
showed significant improvements from the loss in the same period
last year. Third-quarter revenues fell 4 percent year-over-year to
KRW 12.38 trillion (USD 10.93 billion) due to the continuing decline
of feature phone sales and overall weak demand.
LG Home Entertainment company third-quarter 2012 sales of KRW 5.49
trillion (USD 4.84 billion) were led by an increase in LCD TV sales,
offsetting sluggish global demand. Percentage sales attributed to 3D
TVs and LED TVs increased quarter-on-quarter with unit sales growing
in most regions. IT products led by IPS monitors and monitor TVs
also increased from the previous quarter. Operating profit of KRW 89
billion (USD 78.55 million) was unchanged from third quarter 2011.
In the fourth quarter, the company plans to increase sales of LCD
TVs by expanding marketing of CINEMA 3D Smart TVs and enhancing its
brand positioning with the new Ultra HD TV.
LG Mobile Communications company improved significantly in the 2012
third quarter, recording operating profit of KRW 22 billion (USD
19.42 million) due in large part to healthy sales of LTE smartphones
in Korea, Japan and the United States. In addition, Optimus L-Series
continued to expand into 3G markets, contributing to the sales
increase. Revenues increased by 5 percent quarter-to-quarter to KRW
2.45 trillion (USD 2.16 billion) as shipments exceeded 14 million
units, an increase of 9 percent from the previous quarter. The
company expects to further increase its shipments and revenue in the
fourth quarter with the global launch of the Optimus G superphone
and sales of Optimus Vu: 2 in Korea.
LG Home Appliance company reported improved sales and operating
profit from the same quarter last year. Revenue increased 6.4
percent year-over-year to KRW 2.87 trillion (USD 2.53 billion) and
operating profit of KRW 129 billion (USD 113.86 million) reflected
strong sales in the United States as well as emerging markets.
LG Air Conditioning and Energy Solution company posted a 3 percent
year-over-year sales decline to KRW 974 billion (USD 859.66 million)
while profitability increased slightly from the same period the
previous year. The company expects worldwide demand to remain
sluggish but the trend toward more energy efficient products should
help drive demand in its commercial air conditioning systems