LG Reports Strong Q1 Earnings, Sales
By Staff -- TWICE, 4/21/2008
SEOUL, SOUTH KOREA — LG Electronics reported strong first-quarter earnings and sales mostly from the performance of its handset and flat-panel TV businesses.
On a global basis, sales rose 16.9 percent to $11.75 billion and an operating profit of $634 million, which makes the profit margin 5.4 percent — 5.1 percent higher than the previous year.
By business unit, LG's mobile communications company posted the company's record-high sales of $3.484 billion, up 32.6 percent from the first quarter 2007. From handset business, the sales reached $3.35 billion, a 35.7 percent increase from a year earlier. Shipment of handsets recorded the highest in unit sales as well, a total of 24.4 million, thanks to strong sales of Viewty, Voyager, Venus and other high-tier flagship models, the company said. W-CDMA sales in the United States and Korea increased 18 percent on quarter.
Operating profit margin improved to 13.7 percent, with a 13.9 percent increase for the handset division due to growth in premium models and increased productivity leading to better profitability.
The digital display company sales rose 32.1 percent to $3.8 billion due to an increase in sales of flat TVs and monitors. LCD TVs rose 82 percent, plasma TVs rose 18 percent and monitors rose 33 percent from a year earlier. PDP module sales grew 17 percent year-over-year thanks to the company's demand in plasma TVs and 32-inch lineups to the company and other vendors. Operating profit moved up to $1 million, the company said.
LG's digital appliance company sales increased 3.6 percent to $3.19 billion on year and operating margin resulted in 4.7 percent. There was a decrease in the U.S. market contraction from sub-prime effect. A slight decline in profitability was due to higher raw material prices, LG noted.
Sales from the digital media company dropped 5.2 percent on year to $1.37 billion, but operating profit and margin increased to $18 million, or 1.3 percent, due to cost innovations in PC business.
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