Seoul, South Korea – High-end major appliances took center stage during the third quarter, as LG Electronics posted a 28 percent increase in the export of refrigeration, cooking and laundry products, with many of these white goods making their way to the United States.
LG’s overall majap segment sales jumped 11.8 percent in the three months year over year, to $10.3 billion. LG’s largest segment, its mobile handset and telecommunications devices segment, posted third quarter sales of $16.6 billion, a 37.1 increase during the three months, compared with a year ago. The company said the category exhibited improved sales performance and profitability overseas, as demand increased in such selling areas as the United States, and the ratio of high value-added products increased.
LG shipped 7.6 mobile handsets in the third quarter, with a year-to-date total of 18.5 million units. The company expects to supply 26 million units in 2003, up 60 percent, compared with the previous year.
LG said, ‘robust exports and expanded growth’ in the mobile handset business were responsible for an anticipated $16.8 billion to $17 billion in sales for the current year, up 15 percent to 16 percent over 2002.
In its CE segment, LG recorded a 14.9 percent sales increase during the third quarter, hitting $14.7 billion, compared with the same three months last year. Total television sales climbed 22 percent year over year, while optical storage products grew 33 percent, compared with a year ago, thanks to aggressive sales of DVD writers, the company stated.
Despite sluggish domestic demand, healthy exports helped LG raise consolidated third quarter sales 21.7 percent, to $42.2 billion, compared with the same period in 2002. Exports accounted for $32.7 billion of the three-month totals.
Third quarter consolidated operating income hit $158.5 million and net income for the same time frame reached $191.8 million.