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Thu, Jul 23, 2009 - Page 10 News List

LG breaks streak with record profit

STELLAR RESULTS: Record sales of cellphones and flat screen TVs brought the firm US$921 million in earnings for last quarter, a jump of 62 percent — a quarterly record

AP , SEOUL

LG Electronics said yesterday that second-quarter net profit soared 62 percent to an all-time high amid record sales of flat screen televisions and mobile phones.

LG Electronics Inc, the world’s third-largest manufacturer of mobile phones and flat screen TVs, earned 1.15 trillion won (US$921 million) in the three months ended June 30, it said in a regulatory filing and a press release. It posted net profit of 707 billion won a year earlier.

Company spokeswoman Judy Pae said the latest net profit figure was a quarterly record. The result snapped two straight quarters of net losses for the Seoul-based company, which has emerged in recent years as a growing force in global consumer electronics.

Sales during the second ­quarter rose 17 percent to a record 8.48 trillion won from 7.23 trillion won a year earlier, the company said.

Looking ahead, the company said that for the third quarter it expects sales to grow 10 percent year-on-year amid expanding demand for LCD TVs and mobile phones.

Despite the stellar results, shares in LG Electronics fell 1.1 percent to close at 131,500 won. The company released earnings results about two hours before the close of trading.

On a global basis including overseas subsidiaries, LG said that sales rose 13.8 percent to a record 14.5 trillion won, while operating profit came in at a record 1.13 trillion won. LG does not release a consolidated net profit figure.

LG Electronics had suffered during the previous two quarters amid losses at affiliate LG Display, the world’s second-largest manufacturer of liquid-crystal displays. LG Display announced last week that it recorded a net profit of 302 billion won in the second quarter.

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