LG posts record second quarter sales

The company generated operating profits of US $ 3.392 billion and US $ 4.244 billion in net profits, compared to the corresponding period last year. This stellar performance is attributed to strong sales in the company's strategic businesses such as digital TVs, PDPs, and mobile handsets as well as premium home appliances.

Sales from LG's Telecommunications Equipment & Handsets division grew 73.1 percent over 2003 to US $ 1.830 billion and raked in operating profits of US $ 1.202 billion. Mobile handset sales grew 86.7 percent, year on year, to 1.651 billion, with unit growth rising 89 percent over 2003 to 9.94 million sets. In Korea, CDMA unit sales increased 34 percent year on year, while in overseas markets, CDMA unit sales increased 49 percent. GSM unit sales jumped 262 percent, over 2003, due to sales expansion in North America and the successful launch of WCDMA handsets. In addition, Wireless in Local Loop (WLL) mobile and fixed telephone connections and system terminals led the strong growth in exports among system equipment business.

Sales from the Digital Display & Media division increased 9.9 percent to US $ 1.838 billion, compared to 2003 and its operating profits reached US $ 8.590 billion. Sales of digital TVs were up by 42 percent this year and those of PDP modules increased by more than 200 percent as compared to 2003.

Optical storage devices, including DVD writers, continued to lead and maintain its number one position in terms of global market share. Sales of LCD monitors continued to grow and accounted for more than 80 percent of total monitor sales.

Digital appliances have registered a 7.8 percent growth at US $ 1.479 billion, compared to the corresponding period last year. Exports were up 13 percent with premium products leading the overall growth. While domestic sales decreased slightly, down 0.4 percent, premium products sales continued to grow.

Strong sales of premium products have attributed to the growth in all LG's businesses and the company earned US $ 3.392 billion in operating profits, a 50.7 percent increase over 2003. Net profits for the first half of 2004 reached US $ 9.269 billion, exceeding last year's annual net profits of US $ 5.694 billion.

"We are delighted with our upbeat second quarter results," said K. H. Kim, President of LG Electronics, Middle East and Africa Operations. "The Middle East & Africa region is a strategic market for LG Electronics and contributes significantly to LG's global results. Our aim is to be number one across the entire region and we are on track to achieving that."