Second quarter 2008 earnings announced for LG
21 July 2008
LG Viewty
LG Electronics has announced its unaudited consolidated earnings results of the three month period ending 30 June 2008. The amounts in Korean Won (KRW) are translated into US dollars (USD) at the average rate of three month period in each quarter, which was KRW 1,016 per USD (2008 2Q), KRW 955 per USD (2008 1Q, QoQ), and KRW 929 per USD (2007 2Q, YoY).
Flat panel televisions and mobile phone handsets are said to be largely responsible for a growth in sales and profits. However, profit came from all sectors of LG.
On a global basis, sales jumped 22.1% to KRW 12.735 trillion (USD 12.534 billion) and operating profit recorded KRW 856 billion (USD 843 million), which makes the profit margin at 6.7%. On a parent basis, second-quarter sales rose 22.5% to KRW 7.234 trillion (USD 7.120 billion). Operating profit booked KRW 635 billion (USD 625 million) with the profit margin of 8.8%. The company posted strong net profits of KRW 707 billion (USD 696 million), as equity method gains from earnings of its subsidiaries in overseas and investment in LG Display.
Mobile Communications posted sales of KRW 3.849 trillion (USD 3.788 billion), 34.3% up from the second quarter 2007. From handset business, the sales reached KRW 3.754 trillion (USD 3.695 billion), 38.6% up from a year earlier. Operating profit margin improved to 13.9%, 14.4% in handset division due to growth in high-end models and improvements in operational efficiency. Shipment of handsets also recorded the highest in unit sales as well, a total of 27.7 million mainly from North America (33%) and emerging markets including the Middle East Asia, CIS and Central and South America, thanks to strong sales of Secret, Viewty, Venus, and other phones. Secret is the third model in its Black Label Series, with features including a five-megapixel camera.
Digital Appliances’ sales increased 4.9% to KRW 3.781 trillion (USD 3.721 billion) on year and operating margin resulted in 7.2% despite higher raw material prices, and an economic slowdown.
Digital Display’s sales jumped 37.2% to KRW 3.742 trillion (USD 3.683 billion) powered by a rise in sales of flat TVs. Sales of LCD TVs grew 86%, and Plasma TVs grew 31% from a year earlier. PDP module sales grew 22%. Following profitability turnaround in the previous quarter, operating profit in the second quarter successfully remained profitable at KRW 38.0 billion (USD 37.4 million).
Sales from Digital Media reduced 2.1% on year to KRW 1.220 trillion (USD 1.201 billion) due to low seasonality, but operating profit and margin increased to KRW 13.0 billion (USD 12.8 million) and 1.0% by strong effort for cost innovation.
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