LG Electronics Reports Substantial Increase in Third Quarter Earnings and a Total of US$ 6.34 Billion Worth of Sales

- AMMAN, JORDAN, November 29, 2006 - LG Electronics (LGE), the world-leading provider of consumer electronics and mobile communications, announced unprecedented third Quarter earnings for the year 2006.

Sales in the third quarter of 2006 jumped by 4.5 % to reach a total of US$ 6.34 billion especially when compared to results released only a quarter earlier. Operating profit was recorded to reach US$ 206.5 million which in turn translates into an increase of 3.5%. Quarter on quarter results in the Mobile Communications and Digital Display sectors were recorded to be US$ 31.9 million.

Strong sales of plasma panels, plasma and LCD digital TV business led an 18.9% jump in quarter on quarter sales of Digital Display business. Sales in Mobile Communications showed a quarter on quarter increase of 4.7% and 5.3% from the handset business. These results were attributed to strong performance in open markets and robust Chocolate phone sales in North America. Exports for the same time period were recorded to be US$ 4.74 billion thus amounting to 75% of total sales.

From the handsets business only, revenue rose by 5.3% to reach a total US$ 2.23 billion. Boosts in open markets drove growth in the GSM area to 5.6 million units from 4.8 million units. In sales by region, North America saw a sales rise of 45% from 28 % the previous quarter.

Digital Display Company sales jumped 18.9% in the same time period to reach a total of US$ 1.78 billion. Sales of plasma panels rose 26% with the portion of high definition rising to 70% thus exceeding industry average of 66%. The Company"s operating profit expanded to US$ 44.6 million with an increase 104.8% and a year on year increase of 54.3%. These figures were primarily attributer to improvement in product mix to large size digital TVs and cost reduction efforts.

In the fourth quarter of 2006, LG Electronics anticipates sales to increase substantially. Sales in Digital Appliance business are expected to continue growth by expanding premium appliance products such as side-by-side refrigerators, steam drum-type washing machines and light-wave ovens, particularly in North America.

In handset business, "black label" chocolate phone series and follow-up CDMA and GSM phones in Korea and overseas open markets will be the key for further successes.

Mr. T. Y. Lee, General Manager of the LGE Amman Office commented: "The figures reported indeed speak for themselves. The LGE Amman office is indeed very happy about the results, and we are proud that Jordan is a major contributor to the success of the LGE brand worldwide. It is our mission to enhance Jordan"s position as a successful, sustainable, and effective commercial base and we achieve that through constantly bringing to the Jordanian market the latest that LGE"s world-leading technology presents".

From his end, Mr. Ghazi Farouq, Assistant Managing Director for Marketing at MEC, LGE"s agent in Jordan said: "The evident success that LGE brand and products are met with globally is due to the fact that LGE caters to all members of the global communities at large, and it is attentive to the needs of the individuals and corporations alike. LGE"s strong presence in the Jordanian market is perpetually enhanced by way of our standard-setting premium products coupled with LGE and MEC"s corporate social responsibility initiatives that we carry out regularly to give back to the consumers and community that have ranked LGE as the number one choice."

Strong seasonal demands will lead sustainable growth in plasma and LCD digital TVs over 42 inches and overall IT products such as premium products in audio-video, notebook PCs and digital storages including 18x DVD-W, and will support steady rise in Digital Media business. However, average selling price decline will continue.

Source: on pressbot.org | Date: 29.11.2006 - 8:40 | 771 times read