LG Electronics reports Q2 earnings for the year 2007

LGE posted record high sales in the second quarter 2007, thanks to its active Mobile Communications and Digital Appliance business.

The company recorded sales of US$ 11.2 billion on a global basis, which in turn translates into a rise 12.6% when compared to corresponding figures from the pervious year.

Operating profit jumped 50.6% and were recorded to be US$ 324 million) year on year on a global basis.

LGE .Philips LCD and overseas subsidiaries net profit boosted LGE's recurring and net profit to US$ 496 million and US$ 414 million by equity method gain at US$ 333 million.

Overall sales recorded for LGE's Mobile Communication Company US$ 3,084 million; 24.4% higher than a year earlier and operating profit of 11.3%, a jump from 0.4% year-on-year. Handset business showed great progress both on the annual and quarterly bases. Total shipments were 19.1 million units, which make accumulating sum of the two quarters to 34.9 million units.

Strong performance in Digital Appliance business lead jump in sales of 21.4% in comparison to last year and 22.5% relevant to the first quarter of 2007 to US$ 3.879 billion and sustained the operating profit at stable level of 8.1%.

Sales mainly from TVs and monitors posted US$ 2.935 billion 2.1% decrease from the figure from a year earlier, but operating loss of 5.1% proved improvement from the previous quarter through fixed cost reduction efforts and slower flat panel TV price decline.

Sales mainly from media and IT products posted US$ 1.341 billion, 0.3% increase from a year earlier. Slow in seasonality plus intensified price erosion led to profit decline.

Commenting on these earnings Mr. Kevin Cha the General Manager of the LGE Amman Branch, said, "LGE's products have always been in high demand and this is primarily due to the fact that they are a true reflection of the latest degrees of advancement achieved within the technological arena.. Despite the high level of competition seen in this field globally, we at LGE had managed to maintain a leading position especially in regards to our mobile communication and digital display products, and we attribute this distinction to our full understanding of the regional market and its demands."

From his end, Mr. Mr. Ghazi Farouq the Assistant Managing Director for Marketing at the Middle East Complex, an agent for LGE products in Jordan, said" We attribute the impressive sales figures we saw in Jordan to the promotional campaigns we launched and LGE's phenomenal ability to introduce to the markets products that appeal to the public demand while combining attributes of durability, and technical advancement"

Continued growth in handset business including WCDMA in emerging and developed market will lead stable shipment. Full scale global marketing for growing demands in 40 inches and larger flat panel TVs and value-added IT products will improve profitability.