LG Electronics Q3 2008 results...

Publié le par Hamdouni Mohamed


LG Electronics (LG) announced unaudited consolidated earnings results of the three month period ended September 30, 2008.

Sales and Profit Company posted higher-than-expected increase in sales and operating profit in the third quarter both on global and parent basis.

Sales and operating profit on a global basis jumped 21.2% to KRW 12.01 trillion (USD 11.30 billion) and 58% to KRW 571 billion (USD 537 million), which makes the profit margin at 4.8%, 1.2%P higher than a year earlier.

On a parent basis, the increase is even higher; sales is grown 21.0% to KRW 6.887 trillion (USD 6.479 billion) and operating profit booked KRW 338 billion (USD 318 million), 265% of year-on-year.

Profit margin was 4.9%, which is 3.3%P higher than the previous year. However, the company posted net profit of KRW 25 billion (USD 24 million), which is KRW 314 billion lower than a year earlier, due to translation loss of foreign denominated debt and liabilities and decrease in equity method gain of KRW 125 billion from earnings of its subsidiaries in overseas and investment in LG Display.

Mobile Communications Company posted sales of KRW 3.815 trillion (USD 3.589 billion), 29.9% up from the second quarter 2008.

From handset business, the sales reached KRW 3.514 trillion (USD 3.306 billion), 40.8% up from a year earlier. Shipment of handsets recorded 23.0 million, 5% growth YoY but declined 17% from the second-quarter, due to slow sales in India and emerging markets. However, operating profit margin in handset division remained at double digit at 11.5% due to growth in high-end models such as “Secret”, “Viewty” and variety of QWERTY messaging phones in the U.S. Shipment in the fourth-quarter expected to grow and achieve 100 million units annual goal, and double digit profitability is expected to be sustained.

“Renoir”, 8-mega pixel camera phone, and the second version of the “PRADA phone by LG” and “Cookie”, a mid-tier full-touch phone will be unveiled in the coming quarter.

Source: LG Press Release

Publié dans Reports

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