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71664
Thu, 07/23/2009 - 09:31
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Shortlink :
https://oananews.org//node/71664
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LG Electronics posts record-high quarterly profit in Q2
SEOUL, July 22 (Yonhap) -- South Korea's LG Electronics Inc. said Wednesday it posted a record-high profit in the second-quarter earnings on strong overseas demand for its mobile phones and TVs.
LG Electronics earned 1.15 trillion won (US$920 million) in the April-June
period, up 62.1 percent from a year earlier, the company said in a regulatory
filing. It was also a turnaround from a 197.6 billion won loss the previous
quarter.
Sales rose 17.2 percent on-year to a record-high 8.48 trillion won in the second
quarter, with operating profit gaining 12.5 percent to 714 billion won, the
company said.
Despite the stellar second-quarter performance, shares of LG Electronics closed
1.13 percent down at 131,500 won on the Seoul bourse.
LG Electronics said its global sales, including revenue by overseas affiliates,
surged 13.9 percent on-year to a quarterly record of 14.5 trillion won in the
second quarter.
TV shipments also rose 45 percent annually to 4.28 million units as a result of
robust flat panel TV sales, especially of liquid crystal display (LCD) TVs. LG
Electronics is the world's third-largest TV maker after Samsung Electronics Co.
and Sony Corp.
Sales in its display division reached 4.51 trillion won, with a profit margin of
5 percent, 4.7 percentage points higher than a year earlier.
LG Electronics' overseas shipments of mobile handsets climbed 7.8 percent on-year
in the second quarter to 29.82 million units, largely due to strong demand for
mid-range models and full touchscreen phones. The company is the world's No. 3
handset maker.
The company said it expects the global market for handsets to decline over 6
percent on-year in the third quarter, but added that its handset and TV divisions
will likely see substantial growth in the near term thanks to an expected
increase in demand for high-end models.
The company attributed its record-high earnings to its improved revenue from
mobile handsets and LCD TVs.
LG Electronics cautiously offered an upbeat outlook for the third quarter, saying
its sales will increase 10 percent on-year.
"We can't say for sure that the recovery in the market is distinctive. We expect
fierce competition in the global market will cost us more in marketing
activities," said Jung Do-hyun, chief financial officer of LG Electronics.
LG Electronics' second-quarter results beat analysts' forecasts.
"The strength LG Electronics has shown amid the economic recession is more
surprising than the earnings numbers themselves," said Kim Do-han, an analyst at
Samsung Securities.
Kim expected LG Electronics to post steady results in the third quarter with an
operating profit of 760 billion won. "The market share for mobile handsets, TVs
and home appliances including air conditioners will continue to increase as the
company gains more brand competitiveness overseas."
Park Kang-ho, an analyst at Daeshin Investment and Securities, agreed. "LG's
handset market share, which was estimated to have reached 11 percent in the
second quarter, will likely go up to 12 percent within the year."
Analysts expected the company's bottom line to face a "minor" correction in the
third quarter mostly on seasonal factors in sales of home appliances. "However,
LG will show positive growth compared with a year earlier," said Park.
LG Electronics earned 1.15 trillion won (US$920 million) in the April-June
period, up 62.1 percent from a year earlier, the company said in a regulatory
filing. It was also a turnaround from a 197.6 billion won loss the previous
quarter.
Sales rose 17.2 percent on-year to a record-high 8.48 trillion won in the second
quarter, with operating profit gaining 12.5 percent to 714 billion won, the
company said.
Despite the stellar second-quarter performance, shares of LG Electronics closed
1.13 percent down at 131,500 won on the Seoul bourse.
LG Electronics said its global sales, including revenue by overseas affiliates,
surged 13.9 percent on-year to a quarterly record of 14.5 trillion won in the
second quarter.
TV shipments also rose 45 percent annually to 4.28 million units as a result of
robust flat panel TV sales, especially of liquid crystal display (LCD) TVs. LG
Electronics is the world's third-largest TV maker after Samsung Electronics Co.
and Sony Corp.
Sales in its display division reached 4.51 trillion won, with a profit margin of
5 percent, 4.7 percentage points higher than a year earlier.
LG Electronics' overseas shipments of mobile handsets climbed 7.8 percent on-year
in the second quarter to 29.82 million units, largely due to strong demand for
mid-range models and full touchscreen phones. The company is the world's No. 3
handset maker.
The company said it expects the global market for handsets to decline over 6
percent on-year in the third quarter, but added that its handset and TV divisions
will likely see substantial growth in the near term thanks to an expected
increase in demand for high-end models.
The company attributed its record-high earnings to its improved revenue from
mobile handsets and LCD TVs.
LG Electronics cautiously offered an upbeat outlook for the third quarter, saying
its sales will increase 10 percent on-year.
"We can't say for sure that the recovery in the market is distinctive. We expect
fierce competition in the global market will cost us more in marketing
activities," said Jung Do-hyun, chief financial officer of LG Electronics.
LG Electronics' second-quarter results beat analysts' forecasts.
"The strength LG Electronics has shown amid the economic recession is more
surprising than the earnings numbers themselves," said Kim Do-han, an analyst at
Samsung Securities.
Kim expected LG Electronics to post steady results in the third quarter with an
operating profit of 760 billion won. "The market share for mobile handsets, TVs
and home appliances including air conditioners will continue to increase as the
company gains more brand competitiveness overseas."
Park Kang-ho, an analyst at Daeshin Investment and Securities, agreed. "LG's
handset market share, which was estimated to have reached 11 percent in the
second quarter, will likely go up to 12 percent within the year."
Analysts expected the company's bottom line to face a "minor" correction in the
third quarter mostly on seasonal factors in sales of home appliances. "However,
LG will show positive growth compared with a year earlier," said Park.
