LG earns $11,227m in 3 months

Korean consumer electronics and mobile communications leader, LG Electronics has announced unaudited consolidated earnings results of the three-month period, which ended June 30, 2007.

Company recorded sales of KRW 10,430 billion about $11,227 million on a global basis, which rose 12.6 per cent from KRW 9,260 billion, estimated $9,747 million, a year earlier, and KRW 5,903 billion (USD 6,354 million) on a parent basis.

Operating profit jumped 50.6 per cent to KRW 464 billion (USD 499 million) from KRW 308 billion (USD 324 million) year on year on a global basis, and decreased to KRW 145 billion (USD 156 million) year from KRW 190 billion (USD 200 million) year on year on a parent basis.

LG Philips LCD and overseas subsidiaries net profit boosted LG’s recurring and net profit to KRW 461 billion (USD 496 million) and KRW 385 billion (USD 414 million) by equity method gain at KRW 309 billion (USD 333 million).

A year earlier the company recorded net loss of KRW 9.7 billion (USD 10.2 million) on a parent basis.

The company outlines its performance in its four main business division including Mobile Communication Company, Digital Appliance Company, Digital Display Company and Digital Media Company.

As for the Mobile Communication Company, LG said that the overall sales recorded KRW 2,865 billion (USD 3,084 million), 24.4 per cent higher than a year earlier and operating profit of 11.3 per cent, a jump from 0.4 per cent.

Handset business showed great progress both on a YoY and QoQ basis. Sales improved a whole lot to KRW 2,709 billion (USD 2,916 million) by 26.9 per cent YoY and 15.1 per cent QoQ with profitability of 11.6 per cent from loss of

0.7 per cent YoY and gain of 4.7 per cent QoQ mainly by premium product mix. Total shipments were 19.1 million units, which make accumulating sum of the two quarters to 34.9 million units.

On the Digital Appliance Company, LG noted that strong performance were made by this company which has jumped in sales of 21.4 per cent YoY and 22.5 per cent QoQ to KRW 3,604 billion (USD 3,879 million) and sustained the operating profit at stable level of 8.1 per cent.

For the Digital Display Company, LG announced that sales mainly from TVs and monitors posted KRW 2,727 billion (USD 2,935 million, 2.1 per cent decrease from the figure from a year earlier, but operating loss of 5.1 per cent proved improvement from the previous quarter through fixed cost reduction efforts and slower flat panel TV price decline.

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