Record-High Quarterly Sales for LG Appliance Business
Feb 2, 2012
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LG Electronics Inc. reported fourth quarter 2011 revenues of KRW 13.81 trillion (approx. US$12.05 billion) with an operating profit of KRW 23 billion ($20 million). LG saw strong 4Q performance from home appliances and home entertainment products as well as improved profit in mobile and TV businesses.
The company reported a net loss of KRW 112 billion ($97.73 million) in 4Q 2011, primarily from a loss in investments in affiliated companies.
Full-year 2011 revenues were KRW 54.26 trillion ($48.97 billion) and the company reported a 2011 net loss of KRW 433 billion ($391 million). LG said operating profits improved to KRW 280 billion ($253 million) from KRW 176 billion ($153 million) in 2010.
The LG Home Appliance Company posted record-high quarterly sales of KRW 2.99 trillion ($2.6 billion) in 4Q 2011, with strong growth in Korea, the U.S., and developing countries with more energy-efficient products. Lower 4Q operating profit of KRW 65 billion ($57 million) was blamed on higher raw material costs and exchange rates.
Total 2011 home appliance sales were KRW 11.11 trillion ($10.03 billion) with operating profit of KRW 295 billion ($266 million). LG expected that new energy efficient appliances launching worldwide in 2012 will contribute to 2012 revenue growth.
The LG Air Conditioning & Energy Solutions Company reported sales of KRW 680 billion ($593 million) in 4Q 2011, essentially flat compared to 4Q 2010 with an operating loss of KRW 38 billion ($33 million).
For full-year 2011, the company recorded air-conditioning and energy solutions revenues of KRW 4.56 trillion ($4.11 billion) and operating profit of KRW 58 billion ($52 million). LG will drive sales in 2012 with a focus on high-efficiency air-conditioning systems.
The LG Home Entertainment Company shipped a record 8.8 million flat panel TVs from October to December 2011, increasing revenues 17.6% from the previous quarter to KRW 6.31 trillion ($5.5 billion). Full-year 2011 home entertainment sales were KRW 22.38 trillion ($20.2 billion) with operating profit of KRW 423 billion ($382 million).
The LG Mobile Communications Company improved its position in the fourth quarter with operating profits of KRW 12 billion ($10 million) and sales of KRW 2.78 trillion ($2.42 billion) on the strength of premium smartphones. For full-year 2011, the company posted sales of KRW 11.69 trillion ($10.55 billion), down 9.9% from 2010.
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