LG Electronics expects to see modest growth in the coming months banking on competitive LTE smartphones, CINEMA 3D TVs and consumer-friendly, energy efficient appliances.
According to George Mudhune, LG’s head of marketing and corporate communications, East and Central Africa, the company is focusing on strengthening profitability through more aggressive cost control and better allocation of resources.
LG’s unaudited consolidated financial results based on IFRS (International Financial Reporting Standards) for the three-month period ending September 30, indicate that the company had global revenues of $ 11.92 billion in Q3, a 4 per cent decrease compared to the same period last year. Losses on investments in affiliated companies led to a quarterly net loss of $ 382.62 million.
Mudhune attributed the decrease of revenue to the global economy recession that has affected the company’s overall sales in the quarter, adding that due to cost controls and efficiency improvements, operating income improved for all four companies compared with the same period last year.
LG Home Entertainment division shipped 6.8 million flat panel TVs from July to September, the most ever in the third quarter. Revenues decreased by 7 per cent from the previous year to $ 4.96 billion as a result of weaker consumer sentiment in the global market. Operating profit improved 17 per cent over the previous quarter to $ 93.35 million due to a stronger premium product mix of CINEMA 3D TVs and LED LCD TVs.
LG Mobile Communications division sales decreased 8.5 percent year-on-year to $ 2.55 billion. The division posted an operating loss of $ 128.47 million.
LG Home Appliance division posted sales of $ 2.5 billion in the third quarter, a marginal increase from the same period the year before, thanks to strong sales in emerging markets along with the growth of more energy-efficient and smarter products.
Despite an increase in raw materials prices and global currency fluctuation, the division still managed to improve its operating profit by 11 per cent to $ 64.7 million from the same period the year before.
LG Air Conditioning and Energy Solution division grew its third quarter revenues by 11 percent year-over-year due in large part to strong sales in Korea, the Middle Eastand Latin America. The division posted an operating profit of $ 0.92 million in a traditionally slow season for air conditioners.