The LG Home Appliance Company had third quarter 2013 revenues of KRW 2.97 trillion ($2.68 billion), up 3% from KRW 2.87 trillion in the third quarter of 2012, largely credited to a positive reception for new washing machines and refrigerators.
LG appliance sales were up in North America and China but slowed in developing markets.
Unfavorable foreign exchange rates pulled down LG Appliance operating profits in 3Q 2013, despite higher overall revenues and an improved cost structure, to KRW 109.20 billion ($98.17 million).
LG expects economic recovery in developed markets, such as North America and Europe, will gradually drive up demand in these markets in the fourth quarter of 2013. LG expects unfavorable currency exchange rates to slow its results in major developing markets. The company plans to continuously grow faster than the overall appliance market by launching new washing machines and refrigerators, and plans to improve profitability by cost innovation.
LG Air Conditioning and Energy Solutions Company reported relatively flat 3Q 2013 sales and operating profit year-over-year, with revenues of KRW 973 billion ($876.32 million). LG expects increased R&D investments and weak global market conditions to continue to impact the business,
LG Air Conditioning expects continuous weak market conditions due to off-season effects and continuing unstable political/economic conditions in the Middle East and Africa.
LG said the Air Conditioning business will focus on growing its market share of non-seasonal products and higher-margin products such as new commercial air-conditioning systems.
Third-quarter 2013 consolidated revenues for parent company LG Electronics Inc. were KRW 13.89 trillion (approx. US$12.51 billion). LG said overall revenues were down from the third quarter of 2012 due to competition in the TV market and from unfavorable currency exchange rates. On the plus side, LG saw sales of mobile devices grow year-over-year by 24%.
LG reported a 27% increase in third-quarter operating profit, to KRW 217.80 billion ($196.34 million) compared with 3Q 2012.
LG's businesses, in addition to Home Appliances and Air Conditioning, include Mobile Communications, Home Entertainment, Vehicle Components, and several independent business units.
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