Record-High Earnings in Second Quarter for LG Electronics

LG Electronics (LG) has announced unaudited consolidated earnings results of the three-month period ending June 30, 2009. In the second quarter of 2009, LG posted record-high earnings in sales and operating profit on both a parent and a global basis. Sales on a global basis (including LG’s overseas subsidiaries) soared 13.8 percent to USD 11.229 billion year-on-year. Operating profit jumped to USD 878 million resulting in a margin of 7.8 percent, 1.1 percent higher than the previous year. On a parent basis the company recorded sales of USD 6.566 billion and an operating profit of USD 553 million.

The company's home entertainment division saw sales rising by 19.3 percent to USD 3.493 billion, returning a profit of USD 174 million for a margin of 5.0 percent, 4.7 percent higher than the previous year, as a result of robust flat panel TV sales--especially LCD TVs--even during the off-season. Shipments rose 45 percent YoY to 4.28 million units. The company expects its flat panel TV shipments in the third quarter to be even higher as demand for premium models.

The mobile communications division reported USD 3.981 billion in sales, 25.8 percent higher than the previous year, and operating profit of USD 422 million with a margin of 10.6 percent. Handset sales accounted for USD 3.778 billion, up 29.9 percent YoY, and operating profit reached USD 417 million for a margin of 11.0 percent. Shipments of handsets recorded an increase of 7.8 percent YoY and 32 percent QoQ to 29.82 million units.

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