LG See Profits Boosted by Foreign Exchange Gains and LCD TV Sales

LG Electronics has posted a 62% jump in Q2 net profit of KRW1.15 trillion (US$919 million), while sales rose by 13.8% to KRW 14.50 trillion (US$11.23 billion). The quarterly net profit was boosted by a KRW 285.7 billion in foreign exchange gains. The bulk of the rise was also attributed to the company's LCD television division.

The Mobile Communications division reported KRW 5.140 trillion (US$3.98 billion) in sales, 25.8 percent higher than the previous year, and operating profit of KRW 545 billion (US$422 million) with a margin of 10.6 percent.

Handset sales accounted for KRW 4.877 trillion (US$3.78 billion), up 29.9 percent YoY, and operating profit reached KRW 538 billion (US$417 million) for a margin of 11.0 percent. Shipments of handsets recorded an increase of 7.8 percent YoY and 32 percent QoQ to 29.82 million units thanks to strong demand in mid-tier models.

With the global economic downturn expected to continue, LG sees the global market declining over 6 percent YoY to around 280 million units in the third quarter but, as for LG, steady growth is expected with the introduction of high-end devices.

LG Electronics expects sales to grow over 10 percent YoY as demand for LCD TVs and mobile phones continues to expand, with profitability comparable to last year's level.

Posted to the site on 22nd July 2009