LG Appliance Business Up in 2Q With 16.5% Growth
Jul 30, 2010
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Seoul-based LG Electronics said the strong performance of its appliances and home entertainment businesses helped offset profit declines in other business segments in the three-month period ending June 30, 2010.
Overall LG sales were KRW 14.4 trillion (approx. US$12.4 billion) and operating profit was KRW 126 billion ($108 million) in the second quarter of 2010. In Korean won, consolidated sales fell 0.7% (up 10% in USD) and net profit declined by 33% (down 26% in USD) year-over-year.
LG Home Appliance Company showed consistent positive performance with 16.5% year-over-year growth (29% growth on a USD base) on sales of KRW 2.7 trillion ($2.3 billion) and an operating profit of KRW 185 billion ($159 million). Sales expansion in North America, Asia, the Middle East, and Africa and an increase in demand in developing markets led to 30% growth year-over-year in overseas markets.
The Home Appliance Company plans to continue its strong performance with innovative new products such as its 6 Motion front loading washer with direct drive and linear compressor. It also intends to expand its healthcare business and OEM business.
LG Air Conditioning Company saw sales increase 0.3% (11% growth on a USD base) year-over-year to KRW 1.6 trillion ($1.4 billion) with an operating profit of KRW 59 billion ($51 million). The AC Company plans to strengthen its global competitiveness with new energy-efficient models, increased investment in solar cells, and LED lighting.
LG Home Entertainment Company revenues grew 4% from the previous quarter and 19% from a year earlier as demand for flat panel TVs surged, resulting in sales of KRW 5.4 trillion ($4.6 billion) and operating profit of KRW 28 billion ($24 million). Flat panel TV shipments jumped 47% to 6.3 million units compared to the same period last year.
LG Mobile Communications Company shipped 30.6 million units this quarter, an increase of 13% quarter-on-quarter and 2% year-over-year as a result of continued growth in emerging markets and the introduction of new smartphones. Sales increased 5.8% quarter-on-quarter but fell 29.5% year-over-year and the operating profit margin for handsets recorded a loss year-over-year due to investment in R&D and expansion of channels in emerging markets.
LG Business Solutions Company recorded sales of KRW 1.2 trillion ($1.0 billion), an increase of 14.7% year-over-year as a result of growing global demand for monitor TVs and LED monitors. The BS Company will continue to seek new opportunities for its commercial and automotive businesses.
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