Company Reports Third Consecutive Quarter of Solid Net Income
LG Electronics (LG) today revealed an excellent third-quarter performance with the third consecutive quarter of positive net earnings and all four companies producing strong managing profits. Better-than-expected performance in the cellular and house equipment businesses helped balanced out a slight decrease in overall year-over-year earnings for the third quarter.
Third-quarter net benefit of KRW 157 billion dollars (USD 138.57 million) with managing benefit producing KRW 221 billion dollars (USD 195.06 million) showed significant improvements from the loss in the same interval last season. Third-quarter earnings fell 4 % year-over-year to KRW 12.38 billion (USD 10.93 billion) due to the continuing decrease of feature phone earnings and overall weak need.
LG Home Entertainment Organization third-quarter 2012 earnings of KRW 5.49 billion (USD 4.84 billion) were led by a rise in LCD TV earnings, offsetting gradual international need. Percentage earnings attributed to 3D TVs and LED TVs enhanced quarter-on-quarter with unit earnings growing in most regions. IT items led by IPS monitors and monitor TVs also enhanced from the past quarter. Operating benefit of KRW 89 billion dollars (USD 78.55 million) was unchanged from third quarter 2011. In it all quarter, the firm plans to improve earnings of LCD TVs by expanding promotion of CINEMA 3D Smart TVs and enhancing its premium brand positioning with the new Ultra HD TV.
LG Mobile Communications Organization enhanced significantly in the 2012 third quarter, producing managing benefit of KRW 22 billion dollars (USD 19.42 million) due mainly to healthy earnings of LTE smartphones in The Korea, Japan and the U. s. Declares. In addition, Optimus L-Series continued to expand into 3G marketplaces, contributing to the earnings improve. Revenues enhanced by 5 % quarter-to-quarter to KRW 2.45 billion (USD 2.16 billion) as deliveries surpassed 14 thousand units, an improve of 9 % from the past quarter. The company desires to further improve its deliveries and earnings in it all quarter with the international launch of the Optimus G superphone and earnings of Optimus Vu: 2 in The Korea.
LG Home Appliance Organization revealed enhanced earnings and managing benefit from the same quarter last season. Revenue enhanced 6.4 % year-over-year to KRW 2.87 billion (USD 2.53 billion) and managing benefit of KRW 129 billion dollars (USD 113.86 million) reflected strong earnings in the U. s. Declares as well as emerging marketplaces. With international equipment need stagnant, it all quarter will be challenging but additional promotion promotions and new model releases should help balanced out the situation.
LG Air Training and Power Solution Organization posted a 3 % year-over-year earnings decrease to KRW 974 billion dollars (USD 859.66 million) while profitability enhanced slightly from the same interval the season before. The company desires worldwide need to remain gradual but the trend toward more cost effective items should help drive need in its commercial air conditioning systems business.
2012 3Q Exchange Rates Explained
LG Electronics' unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2012. Amounts in Korean Won (KRW) are translated into U.S. Dollars (USD) at the average rate of the three-month period in each corresponding quarter: KRW 1,133 per USD (2012 3Q) and KRW 1,082 per USD (2011 3Q).
Earnings Conference and Conference Call
LG Electronics will hold a Korean language earnings news conference on October 24, 2012 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow on October 25, 2012 at 10:00 Korea Standard Time (01:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#.
The corresponding presentation file will be available for download at the LG Electronics website
(www.lg.com/global/ir/reports/earning-release.jsp) at 13:30 on October 24, 2012.
Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142670# when prompted.
Source : LG, Q3 2012 Results (PDF)
Source : LG, Q3 2012 Results (PDF)