LG reports 46% net profit increase

PanARMENIAN.Net - LG Electronics (LG) reported a 46 percent increase in net profits for the second quarter of 2012 versus the same period a year ago.

According to the company’s press release, due to a combination of more premium products, strategic focus on developing markets and aggressive cost reductions, second-quarter net profit increased to KRW 159 billion (USD 138.02 million) while operating profit more than doubled to KRW 349 billion (USD 302.95 million) from the same period last year. Revenues, while 5.2 percent higher than in the first quarter, declined from last year’s second quarter by 10.6 percent to KRW 12.86 trillion (USD 11.16 billion) due to declining feature phone sales and weak demand for IT products.

LG Home Entertainment Company posted significantly improved operating profit in the quarter compared to the same period in 2011. Due in large part to an increase in sales of more premium products and improved supply chain management, operating profit more than doubled to 216 billion (USD 187.5 million) year-over-year. Sales declined 5.8 percent from the same period a year ago to KRW 5.48 trillion (USD 4.76 billion) but increased 2.8 percent from the first quarter of 2012. LG’s popular CINEMA 3D TVs will continue to drive sales in the second half as it pushes ahead to become the top global seller in the 3D segment.

LG Home Appliance Company saw its second-quarter 2012 operating profit nearly triple to KRW 165 billion (USD 143.23 million) from the same period last year thanks to a better product mix and improved cost efficiency. Revenues also increased year-over-year to KRW 2.88 trillion (USD 2.50 billion) from growth in developing markets. The company still expects improved results in the second half compared to the previous year despite ongoing weak demand in developed markets.

LG Air Conditioning and Energy Solution Company posted operating profit of KRW 70 billion (USD 60.76 million), a 17 percent increase year-over-year. Revenues increased 21 percent quarter-to-quarter but declined year-over-year to KRW 1.47 trillion (USD 1.28 billion) due to weak residential conditioner sales in Korea and low demand in developed markets.