LG Electronics posts record first quarter sales

Mr Young Soo Kwon, Chief Financial Officer of LG Electronics, recently announced the first quarter performance at the Korea Stock Exchange.

LGE performance in the first quarter was propelled by solid growth in the digital display media sector and strong sales of premium home appliances. LGE sales were KRW 5,996 billion (US$5.17 billion) in total; export sales accounted for KRW 472 billion (US$0.4 billion); and domestic Korean sales were KRW 128 billion (US$0.11 billion).

Mr K. H Kim, President of LG Electronics Middle East and Africa, said: "This impressive LG performance is due to LG's strong committment to its customers, its success in developing innovative technology and a distinct marketing strategy. The LG brand is among the strongest electronics brands globally and regionally. So far, on the regional level, we have seen very healthy sale increases in line with our expectations."

LGE generated first quarter operating profits of KRW 407 billion (US$0.35 billion), KRW 732 billion (US$0.63 billion) in recurring profit, and KRW 585 billion (US$0.5 billion) in net profit.

LG Electronics, despite concerns over the delayed recovery of the global IT industry, a sluggish domestic economy and surging oil prices, recorded its largest quarterly sales performance in the first quarter of 2004. Aggressive marketing of strategic businesses such as digital TVs, PDPs, mobile handsets and premium home appliances played a big role.

Sales from the Telecommunications Equipment and Handsets Company grew 39.5 per cent compared with the same period last year to KRW 1,789 billion (US$1.54 billion). Sales of handsets alone grew 43 per cent on-year to KRW 1,577 billion (US$1.36 billion), with unit growth rising 56 per cent on-year to 8.75 million sets, due to increased domestic sales and exports.

CDMA exports rose 29 per cent due to increased shipments to North America while CDMA unit growth in Korea grew 66 per cent. In addition, GSM unit growth jumped 148 per cent on-year due to increased shipments to the United States, CIS, Middle East, and Africa.

Sales from the Digital Display and Media Company rose 16.9 per cent on-year to KRW 2,396 billion (US$2.06 billion), while its operating profit increased KRW 147 billion (US$0.13 billion) with a margin of 6.1 per cent. Sales of digital TVs, such as PDPs and LCDs, were up by 27 per cent compared with the same period in the previous year.

Furthermore, sales of optical storage devices continued to lead the market by maintaining the number one global market share (26 per cent). Exports of A/V products, including Combi and DVD recorders, also showed significant sales growth.

Sales at the Digital Appliances Company showed 7 per cent growth compared with the same period in the previous year to KRW 1,766 billion (US$1.52 billion) as robust exports of premium products led the overall growth.

Meanwhile, LG Electronics earned KRW 407 billion (US$0.35 billion) in operating profit with a margin of 6.8 per cent. Its recurring profit rose 270.1 per cent compared with the same period last year to record KRW 732 billion (US$0.63 billion) on the back of equity method gains from LG.Philips LCD.