LG posts record Q2 net profit
Posted July 23, 2009on:
South Korean vendor LG Electronics claims it will continue to defy the general market slowdown after posting record-high quarterly net profit thanks in part to robust sales of mobile devices. It sold 29.8 million handsets in the three months to July, boosted by premium products such as the multimedia touch-screen phone Arena and steady sales of mid-range phones. In the second quarter LG’s total net profit rose 62 percent to KRW1.15 trillion (US$903 million) on revenues of KRW14.5 trillion (a 13.8 percent increase on the year-ago period). Its mobile division reported KRW5.14 trillion in sales, 25.8 percent higher than the previous year, and operating profit of KRW545 billion with a margin of 10.6 percent. Handset sales accounted for 95 percent of its mobile division revenues.
LG is the world’s third-largest handset manufacturer and aims to overtake number two rival Samsung by 2012. Although LG forecasts the global handset market to decline over 6 percent year-on-year to around 280 million units in the third quarter, it expects to enjoy its own “steady growth” with the introduction of future high-end devices. LG – a contender in home entertainment, home appliances, air conditioning and business solutions, as well as mobile communications – said it expects total company sales “to grow over 10 percent YoY as demand for LCD TVs and mobile phones continues to expand, with profitability comparable to last year’s level.”
Source: MBB, GSMA