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LG: TV, Majaps Lead, Phones Lag In Q3

10/28/2010 10:19:21 AM Eastern
Seoul, Korea - LG Electronics reported higher revenues based on strong flat panel TV and home appliance sales,  but lower net profits due to its performance in mobile phones during the third quarter.

LG posted consolidated third-quarter 2010 revenues of 13.4 trillion won ($11.3 billion), a 2 percent decline from the same period last year (up 3 percent in U.S. dollars).

Net profit was 8 billion won ($6.4 million) in the third quarter. During last year's third quarter net profit was $650 million (807 billion Korean won).

In LG's Home Entertainment Company more flat panel TVs in the third quarter were shipped than in any time in company history - 6.6 million units - a 37 percent increase from the same period the previous year.

Home Entertainment revenues grew 9 percent in won (14 percent in dollars) from the year earlier due to improved LCD TV sales, especially in emerging markets. Sales were 5.4 trillion won ($4.5 billion) and operating profit was 123 billion won ($104 million).

The story was not the same for the LG Mobile Communications Company where revenues decreased by 30 percent year-over-year in the Korean won (27 percent in U.S. dollars) as a result of a decline in handset shipments across developed markets.

The company shipped 28.4 million handsets in the quarter. Revenues were down 32 percent in the Korean won (29 percent in dollars) year over year. The global introduction of the Optimus One smartphone and new Windows Phone 7 models are expected to generate a positive response from consumers in the coming months, LG said.

The LG Home Appliance Company reported 9 percent growth in the Korean won (14 percent in dollars) year-over-year on sales of 2.8 trillion won ($2.3 billion) and an operating profit of 67 billion  won ($57 million ).

 Sales from overseas markets grew

17 percent in U.S. dollars from the previous year due to OEM business expansion in the North American market and peak season promotions in India and China.

For the LG Air Conditioning Company sales increased 35 percent in the Korean won (42 percent in U.S. dollars) year-over-year to 1.1 trillion won ($900 million) with significant growth in developing markets, LG said.

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