LG Electronics Inc. (LG) announced a 165% increase in second-quarter 2014 net profit compared with the second quarter of 2013. The company said it had strong earnings from TV operations and mobile operations.
LG reported 2Q 2014 net profit of KRW 412 billion (approximately US $399.8 million), up from KRW 156 billion in 2Q 2013. Operating profit was KRW 606 billion (approx. $588.5 million), up 26.5% from KRW 479 billion in 2Q 2013.
Unaudited 2Q consolidated revenues were KRW 15.37 trillion (approx. $14.93 billion) increased 7.7% from the previous quarter's KRW 14.27 trillion and up 0.9% from 2Q 2013's KRW 15.23 trillion.
LG Home Appliance Company saw strong 2Q 2014 sales in Korea, up 9% from 2Q 2013. Second-quarter revenue was KRW 3.03 trillion (approx. $2.94 billion) down 5% from 2Q 2013, blamed mostly on currency exchange impacts.
LG Home Appliance Company had operating profit of KRW 97.8 billion (approx. $95.0 million) and profit margin of 3.2%.
LG expects revenues and profitability for home appliances to improve in the second half of 2014, spurred by:
• a new washing machine launch
• new refrigerator products
• cost reductions
The LG Air Conditioning & Energy Solution Company recorded steady sales of commercial air-conditioners and new products, such as dehumidifiers, and reported 2Q 2014 revenues of KRW 1.64 trillion (approx. $1.59 billion). Operating profit was KRW 164.2 billion (approx. $159.4 million).
Revenues were slightly lower than the year-ago period, but an better product mix resulted in a profit margin of 10%.
Second-half results are expected to get a boost from:
• stronger demand in the Middle East
• launch of more variable refrigerant flow (VRF) air-conditioners
• better cost-competitiveness in commercial air-conditioners
Other segments of LG include LG Home Entertainment Company and LG Mobile Communications Company,
to Daily News