Korean electronics giant LG Electronics (LGE) posted record sales in the third quarter of 2004. Chief Financial Officer, Young Soo Kwon, announced the third quarter performance at the Korean Stock Exchange in Seoul.
Sales reached a quarterly record high of $5.292 million, up by 24.3% on the year and 1.4% on the quarter. LGE`s performance in the third quarter was propelled by strong sales of mobile handsets, digital TVs and air-conditioners. LG Electronics generated $300 million in operating profit.
LG Electronics attributes these sales to the tremendous performance of its export division.
Sales from the telecommunications equipment and handsets company grew 61.3%, with unit growth rising 55% year on year to 11.8 million sets. In Korea, CDMA unit sales decreased 25% quarter on quarter owing to sluggish demand, versus 8% year on year increase.
In overseas markets, CDMA unit sales increased 12% year on year thanks to the strong sales to North America. GSM unit sales rocketed 353% in comparison to last year due to sales expansion in North America and WCDMA market share expansion in Europe.
Sales from the digital display and media company exceeded $1.8 billion. When excluding sales figures from PC business, sales increased 15% year on year. LGE`s PC business has reduced its OEM portion, from 90% to 40%, to strengthen the LG brand business.
Strong sales of digital TV and PDP module led to strong growth yet again. Sales of digital TVs were up by 53% on last year, with sales of PDP TV increasing 153%. PDP module sales more than doubled to 123% over 2003.
Sales from the digital appliances company increased 17.5% over last year. A surge in domestic air-conditioner sales and strong exports of LG-branded premium products led the overall growth. Exports and domestic sales were up 18% and 17% on-year, respectively.
Meanwhile, LG Electronics operating profit was up 92% on last year, with a margin of 5.8%. Recurring profit rose 37.3% compared with the same period last year on the back of equity method gains from LG.Philips LCD. Overall, strong sales of premium products led to margin improvement year on year in all LGE`s businesses.
Despite prolonged sluggish domestic economy and concerns over other external factors, such as rising oil prices and interest rate hikes in the US, total sales for 4Q 2004 is expected to rise 15% thanks to the steady growth in handset exports.
Share
Editorial contacts