LG Electronics Posts Record Sales for Second Quarter of 2004
LG Electronics Posts Record Sales for Second Quarter of 2004LG Electronics Posts Record Sales for Second Quarter of 2004
- 2Q Sales Totals KRW 6,029 Billion, Operating Profit KRW 395 Billion,
Net Profit KRW 494 Billion
- 2Q Sales Increases 25.2% YoY
- Mobile Handset Sales Jumped 87% YoY to KRW 1,922 Billion
- 1H Sales Reach KRW 12.025 Trililon, Net Profit KRW 1,079 Billion
Seoul, Korea � July', 2004 � LG Electronics posted record sales in the second quarter of 2004 despite the sluggish domestic economy. On July', 2004, Mr. Young Soo Kwon, Chief Financial Officer of LG Electronics, announced the second quarter performance at the Korea Stock Exchange. Sales reached a record high of KRW 6,029 billion (export: KRW 4,648 billion, domestic sales KRW 1,381 billion), up by 25.2% on year and 0.5% on quarter. LGE's stellar performance in the second quarter was propelled by strong sales of mobile handsets and premium home appliances. LG Electronics generated KRW 395 billion in operating profit, KRW 674 billion in recurring profit, and KRW 494 billion in net profit.
LG Electronics recorded its largest quarterly sales in the second quarter of 2004 on the back of strong exports. This is mainly due to aggressive marketing on LGE's strategic businesses such as digital TVs, PDPs, and mobile handsets as well as on premium home appliances.
Sales from the Telecommunications Equipment & Handsets Company grew 73.1% on-year KRW 2,130 billion. Its operating profit reached KRW 140 billion with a margin of 6.6%. Sales of handsets alone grew 86.7% on-year to KRW 1,922 billion, with unit growth rising 89% on-year to 9.94 million sets. In Korea, CDMA unit sales increased 34% yoy, versus 23% qoq decrease. On-quarter unit decrease was mostly due to slowed mobile number portability demand. In overseas markets, CDMA unit sales increased 49% on year, and GSM unit sales jumped 262% on year due to sales expansion in North America and the successful launch of WCDMA handsets. In addition, WLL and system terminals led the strong growth in exports among system equipment business.
Sales from the Digital Display & Media Company rose 9.9% on-year to KRW 2,140 billion. Its operating profit reached KRW 100 billion with a 4.7% margin. Sales of digital TVs were up by 42% on year and those of PDP modules increased by more than 200% on year. Furthermore, sales of optical storage devices, including DVD writers, continued to lead the market, maintaining the No. 1 global market share. Sales of LCD monitors continued to grow, with its share reaching more than 80% of total monitor sales.
Sales at Digital Appliances Company showed 7.8% growth compared with the same period in the previous year to KRW 1,722 billion. Exports were up 13% on year with premium products leading the overall growth. And while domestic sales decreased slightly, down 0.4% on year, premium products sales continued to grow.
Meanwhile, LG Electronics earned KRW 395 billion in operating profit, up by 50.7% on year, with a margin of 6.6%. Its recurring profit rose 79.8% compared with the same period last year to record KRW 674 billion (margin 11.2%) on the back of equity method gains from LG.Philips LCD. Net profit reached KRW 494 billion with a margin of 8.2%.
Overall, strong sales of premium products led to margin improvement year on year in all LGE's businesses. Net profit in the first half reached KRW 1,079 billion, well-exceeding last year's annual net profit of KRW 663 billion.