LG ANNOUNCES THIRD-QUARTER 2013 FINANCIAL RESULTS
The LG Home Entertainment Company reported revenues of KRW 5.01 trillion (USD 4.50 billion), a 7 percent decline from the same period a year ago, reflecting slower global TV demand and lower selling prices.Higher sales in developing markets such as Asia and the CIS region were offset by softness in Europe.Operating profit of KRW 124.40 billion (USD 111.68 million) increased both year-over-yearand quarter-over-quarter as a result of more efficient management of operating and marketing expense. As it enters the holiday selling season, LG plans to expand global sales of premium products such as OLED TVs and Ultra HD TVswhile continuing to carefully manage costs.
The LG Mobile Communications Company’s third-quarter revenuesincreased by 24 percent compared with the same quartera year ago to KRW 3.05 trillion (USD 2.75 billion). The company shipped 12 million smartphones in the third quarter but profitability and average selling price were affected by increased competition and higher marketing investments. LG plans to focus on increasing sales of new premium products such as the LG G2 smartphone during the peak holiday season as well as maximizing 3G and mid-tier mass devices such as the L II Series and F Series.
The LG Home Appliance Company recorded revenues of KRW 2.97 trillion (USD 2.68 billion), up 3 percent from the previous year largely due to the positivereception of its new washing machines and refrigerators. LG appliance sales increased in North America and China but slowed in developing markets. Despite higher overall revenues and improved cost structure, third-quarter operating profitdecreased from the same period last year to KRW 109.20 billion (USD 98.17 million) primarilydue tounfavorable foreign exchange movements.
The LG Air Conditioning and Energy Solutions Company reportedrelatively flat third-quarter sales and operating profit margin year-over-year with revenues ofKRW 973billion (USD 876.32million). While increased R&D investments and weak global market conditions will continue to impact the business, the company will focus on growing its market share of non-seasonal products and higher-margin products such as new commercial air conditioning systems.
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