LG Electronics (LGE), the global leader in consumer electronics and mobile communications, announced its un-audited earnings for the three month period ending March 31, 2007.
For the first quarter of 2007, the company posted a revenue of US$ 6.43 billion. This amount constitutes to a 4.0% increase when compared to figures recorded for the corresponding time period last year. This increase in revenue earnings is primarily due to robust sales of premium handsets and home appliances. On consolidated basis revenues including sales figures from LGE’s overseas subsidiaries, reached US$ 10.22 billion. This monetary value constitutes an 8.3% increase when compared to results from the previous year.
LGE’s Mobile Communication Company recorded sales earnings worth US$ 2.67 billion which in turn translates 14.7% increase when compared to LGE’s Mobile Communication Company’s sales figures from the corresponding time period last year. Revenue from the handset business rose by 17.8% to reach a total of US$ 2.50 billion with total in shipments of 15.8 million units during the first quarter of 2007.
Success of ‘Shine’ phone and DMB line-ups in Korea pushed up shipments thus constituting to a quarter on quarter increase of 46%. From another angle, the continued high demand for premium ‘Chocolate’ phone in GSM open-markets led a quarter on quarter increase of shipments worth 28%. A growth in WCDMA phones sales was realized in Korea and the United States. Furthermore, the mobile communication company’s operating margin for the first quarter of 2007 was recorded to be 4.7%.
LGE’s Digital Appliance Company recorded a 15.1% increase in sales earnings which constitutes to a US$ 3.13 billion monetary value increase when compared to corresponding figures from the previous year. These positive sales earnings are attributed to a growth in LGE’s premium product lines. The improvement of operating profit for this particular unit was also remarkable, for the increase was recorded to be US$ 17.9 million which is 43.6% higher than operational profits recorded earlier and a 37.1% increase from the previous quarter.
The Digital Display Company sales including plasma display panels (PDP) and flat panel TVs and monitors rose by 1.5% to reach a total US$ 2.93 billion increase in sales from the previous year.
Commenting on these results, General Manager of the LGE Amman Branch, Mr. Kevin Cha said, I am proud of what we as a global company have achieved, for we have continued to excel in terms of solidifying our global presence once again despite the fact that the global electronics’ market has witnessed high levels of competition. We attribute this achievement to the cost effective, convenient, and innovative attributes of our product lines, for these results show our true commitment to excellence”.
Mr. Cha added that he anticipates profitable growth and market leadership in LGE’s business for years to come. Commenting further on his outlook for the remainder of the year 2007, and the years to come he said, “We work intelligently and diligently towards solidifying our position as a company on both the parent and global levels. The recognition that we are receiving from Internationally-acclaimed organizations and awarding bodies is further proof of our position as a leader in all terms of our operation. We possess great pride in all the members of the LGE Family and their efforts, and are looking forward to reaping more notable achievements and results in the year to come”.
From his end Mr. Ghazi Farouq the Assistant Managing Director for Marketing at the Middle East Complex, an agent for LGE products in Jordan added that MEC is a channel for boosting LGE’s sales and its performance in the Kingdom. Commenting further on MEC’s partnership with LGE, Mr. Farouq said, “It is our mission to enhance and maintain LGE’s leading position in Jordan, and position Jordan’s market as a successful, sustainable, and effective commercial base. To achieve this, we need to continuously introduce to Jordanians all that is new and innovative from LGE, especially since LGE is a name that caters to all sectors of the community despite their diversified needs. We also encourage the public to visit us at all of our Darwish Al Khalili showrooms to experience on first-hand basis the world-leading technology that is embedded in all of LGE’s products.”
About LG Electronics, Inc
LG Electronics, Inc. (KSE: 06657.KS) is the global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 72,000 people working in over 120 operations including 80 subsidiaries around the world. Comprised of four business units: Mobile Communications, Digital Appliance, Digital Display and Digital Media with global sales at USD 34.7 billion (consolidated USD 43.4 billion) as of 2005, LG Electronics is the world’s leading provider of CDMA handsets, residential air conditioners, plasma panels, optical storage products, DVD players and home theatre system. For more information, please visit www.lge.com
