LG Appliance Business Profit Up 48% Apr 26, 2012

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LG Electronics said that, after two quarters of net losses, the company had a net profit in the first quarter of 2012. LG reported a net profit of KRW 243 billion (approx. US$214.9 million), which it said was a result of the company's efforts to innovate in all key business areas and focus on high-performing products.

LG reported consolidated revenues of KRW 12.2 trillion ($10.8 billion) and an operating profit of KRW 448 billion ($396.1 million). This compares favorably to the consolidated operating profit of KRW 280 billion for all of 2011.

LG Home Appliance Company's first quarter 2012 operating profit increased 48% from 1Q 2011 to KRW 152 billion ($134.4 million), which came thanks to higher average sales prices, a better product mix, and cost efficiencies. Revenue was down 2.7% year-over-year, to KRW 2.5 trillion ($2.2 billion), primarily reflecting a slowdown in China and in developed markets.

LG Air Conditioning and Energy Solution Company saw operating profit more than double from 1Q 2011 to KRW 81 billion ($71.6 million) thanks to new high-end products and cost structure improvements. First-quarter revenues were essentially flat, down 1.2% year-over-year to KRW 1.2 trillion ($1.1 billion). LG believes that government policies to promote energy-efficient products in homes and businesses will create new growth opportunities for the company.

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