Korea-based appliance and consumer electronics maker LG Electronics announced first-quarter sales reached 5.9 trillion won (approx. U.S. $5.8 billion), down 0.6 percent from the same period last year. The company reported 83 billion won (approx. $81.6 million) in net profit, up 1.4 percent from last year and a recurring profit of 77 billon won (approx. $75.7 million), up 1.3 percent from the same period in 2004.
According to the company, sales in Korean won terms decreased slightly due to the won's appreciation, while U.S.-denominated export growth of LG branded products remained strong, growing 13.2 percent year-over-year. Korean sales grew on the back of strong sales of consumer electronics products. First quarter profit was down from the same period last year due to the increase in R&D investment, the won appreciation and raw material cost hike, amid the weak business environment.
LG reported sales from its Digital Appliances Company declined 5.5 percent year-on-year to 1.6 trillion won (approx. $1.6 billion). Korean-based sales increased 27 percent year-on-year due to a surge in air-conditioner sales and other premium products. Exports decreased by 15 percent year-on-year due to the won appreciation and relocation of production base.
Sales from LG's Mobile Communications Company grew 15.6 percent year-on-year to 2.2 trillion won (approx. $2.2 billion). Sales of handsets alone grew 18.8 percent year-on-year to 1.9 trillion won (approx. $1.9 billion).
Sales from LG's Digital Display Company fell by 1.9 percent year-on-year to 1.3 trillion (approx. $1.3 billion). Sales of DTV were up by 21 percent year-on-year, with plasma TVs increasing by 82 percent and LCD TVs by 70 percent.
LG said it will focus on premium brand products and cost innovation to counter concerns over external factors, such as increased material costs, a price decline in displays, and exchange rates.
Back to Breaking News