North America Drives LG Handset Sales Rise

LG Electronics has reported that sales in the third quarter of 2006 jumped 4.5 % to US$6.34 billion from US$6.099 billion a quarter earlier. Operating profit recorded US$206.5 million, increased 3.5% quarter on quarter and Mobile Communications and Digital Display Company led recurring profit and net profit to turn-around, booking gains of US$31.9 million and US$23.7 million despite an equity method loss from LG.Philips LCD.

Strong sales of plasma panels and plasma and LCD digital TV business led a 18.9% jump QoQ in sales of Digital Display business, and sales in Mobile Communications showed QoQ increase of 4.7% and 5.3% from the handset business, thanks to strong performance in open markets and robust Chocolate phone sales in North America. Exports recorded US$4.74 billion, amounting to 75% of total sales.

Mobile Communication Company recorded sales of US$2.41 billion, 4.7% higher QoQ and 9.7% decrease YoY, and operating profit of US$102 million, a 370% increase from US$22 million QoQ and 23% decrease from US$124 million YoY.

From the handsets business only, revenue rose 5.3% to US$2.23 billion from US$2.125 billion QoQ. Operating profit recorded US$82 million, 3.7% of total revenue and turn-around from loss of US$3.15 million in the previous quarter.

Total shipments were 16.5 million units (10.5 million in CDMA, 5.6 million in GSM, 0.5 million in WCDMA), an 8% increase from the previous quarter of 15.3 million units and 7% increase YoY. Improved shipment in CMDA market to 10.5 million units from 9.1 million units was driven by strong performance in North America geared by Chocolate phones and Korea. Boosts in open markets drove growth in GSM area to 5.6 million units from 4.8 million units. In sales by region, rise in North America of 45% from 28 % the previous quarter was remarkable."

Posted to the site on 18th October 2006