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LG Electronics Sales Up

Seoul, South Korea – LG Electronics, the diversified supplier of major appliances, mobile handsets and Zenith-brand televisions, reported a 12-month increase of 7.2 percent in its display and media segment, hitting $6.8 billion.

This segment, which includes digital television and home theater, was characterized as in a state of ‘recovery’ in 2002, according to LG.

LG’s digital appliance segment, which includes majaps, enjoyed a 21.7 percent 12-month increase, reaching $5.5 billion. This segment prospered from ‘stable growth’ in 2002, said LG.

For the year, mobile phones recorded a 46 percent increase in sales, to $3 billion. LG reported sales of 16-millon handsets for the 12 months, up 58 percent from the previous year. Handset operating profit climbed from a 7 percent increase in 2001, to a 10 percent increase in 2002.

The increase in mobile handset sales helped LG post an overall fourth quarter sales hike of 13.9 percent, to $3.9 billion. Operating profit for the fourth quarter, ended Dec. 31, hit $35.9 million, down from $87.9 million year over year. The company posted a net loss of $152.9 million, narrowing a net loss of $207.3 million the previous year. Much of the LG loss was due to a special charge related to its struggling LG Philips Display joint venture and bonus payments to employees.

Overall LG sales in 2002 reached $15.8 billion, while operating profit came in at $1.9 billion, a 29.2 percent increase over the $677.8 million recorded the previous year. Exports accounted for $10.2 billion of total 2002 sales. Net profit for the 12 months reached $423.7 million, down from $431.7 million the previous year.

LG is anticipating overall sales of $15.3 billion to $15.6 billion in 2003, down 3 percent to 5 percent from 2002.