GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> LifeStyle

 
  Share

Home Appliance & Air Solution Company Reports Solid Quarter, Offsetting Challenging Market Conditions for TVs, Smartphones

Dubai, October 31, 2015 ― LG Electronics Inc. (LG) today announced strong operating profit margin in its Home Appliance & Air Solution Company, contributing to a modest overall net profit of KRW 124.8 billion (USD 106.76 million) for the third quarter of 2015. Amid increasing competitive pressure in both the TV and smartphone sectors, LG's third-quarter sales rose 0.7 percent from the second quarter to KRW 14.03 trillion (USD 12 billion), while operating profit increased from the previous quarter to KRW 294 billion (USD 251.5 million).

The LG Home Entertainment Company reported third-quarter revenue of KRW 4.29 trillion (USD 3.67 billion), an increase of 9 percent quarter-on-quarter due to solid sales in UHD and OLED TVs in markets such as North America, Latin America and Commonwealth of Independent States. Profitability also increased from the previous quarter as a result of improvements in product mix and cost structure. With continuing soft global TV demand, LG plans to bolster its profitability by increasing its marketing focus in the premium segment while continuing to improve its cost competitiveness.

The LG Mobile Communications Company reported global shipments of 14.9 million smartphones, a 6 percent increase from the previous quarter. Despite a 12 percent sales increase in North America, overall revenues of KRW 3.38 trillion (USD 2.89 billion) were 7 percent lower quarter-on-quarter and decreased 21 percent year-on-year due in large part to weaker demand for high-end devices in Korea. LG expects the launch of the advanced V10 and price-competitive Nexus 5X smartphones in the fourth quarter to improve the overall product mix.

The LG Home Appliance & Air Solution Company reported a strong quarter with a 4 percent increase in sales to KRW 4.15 trillion (USD 3.55 billion) and an operating profit of KRW 245.6 billion (USD 210.1 million), an increase of 420 percent from the same period the year before. Operating profit for refrigerators improved as a result of strong sales of premium models in North America and Korea while the unique new Twin Wash system contributed toward improved profit margins in the washing machine business. Fourth-quarter results are likely to be impacted by the effects of unfavorable exchange rate and seasonality.

The LG Vehicle Components Company reported a 6 percent increase in sales quarter-on-quarter to KRW 478.6 billion (USD 409.41 million) primarily as a result of its growing infotainment business. Revenues from vehicle engineering were flat due to weaker demand in emerging markets such as Russia and Malaysia. Investments in R&D related to electric car and automotive electronic components contributed to a modest operating loss. Going forward, LG expects recent issues related to diesel automobiles to positively affect the electric vehicle and automotive electronic components markets.
 
2015 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, 2015. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter ― KRW 1,169 per USD (2015 3Q).



Posted by : GoDubai Editorial Team
Viewed 10876 times
Posted on : Saturday, October 31, 2015  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Securifi Inks Distribution Agreement With Logicom
Next Story : LG Launches Premium Cordless Vacuum Cleaning Cordzero™ Collection.
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
24 Karat Gold Elixir by Mehrunisa Launches in the UAE Beauty Market
Interview with Asil Attar, CEO of Al Yasra Fashion
Festive Gift Sets from Bubble T
Get Ready for Party Season with Lottie's new make-up hits
Holiday Gifting Made Easy with Wet n Wild Beauty Specials
DKNY Launches (Limited Edition) Holiday 2018 Collection
Tissot PR100 Lady Sport – Chic Glamourous Festive Season
Winter wool Christmas must- haves
New 1948 Seamaster Watches Join the Ranks'
Samsung Galaxy A9 – Designed to capture the world in its fullest
Tissot PR100 Lady Sport – Chic Sporty yet Feminine
Chic and Stylish Wraps with a 3 in 1 effortless concept
Michael Kors Collection Transeason 2019 Press Presentation
Dubai Shopping Festival Wednesday Specials at The Smile Bar
Santa is Coming to Town!
9th Edition of China Homelife Exhibition to Have Over 3000 Exhibitors Across Bus...
New Menu alert: Moombai & Co. launches exciting and delicious food items to its menu
Els Back for the 30th Omega Dubai Desert Classic Aiming for a Record Fourth Victory
CITIZEN's “#MyBetterStartsNow” campaign seeks out UAE's inspired and driven indi...
UAE students win top awards at international math competition in Malaysia
Enjoy 11 exciting new street entertainment shows at BOLLYWOOD PARKS™ Dubai
Model of the Year Takes Camo to Catwalk Level
Get Party Ready with Champion Cleaners
Marni Introduces Marni Rothko, A 7-layer Acetate Frame With a Vivid, New Color ...
'Introducing the GUESS Jeans Fall 2018 Collection'
Raja Al Gurg is one of Forbes Magazine's 100 most powerful women in the world
Extra Fort Automatic continues to set style standards
Over 80 developers showcase top projects at Indian Property Show in Dubai
Ring in the New Year With Four Firework Shows at Dubai Festival City Mall
Johnny Depp Wears a Corum Bubble Skull
Nine winners honored by DQG for their innovative ideas at the 10th Global Contin...
Puma and Hasbro Announce New Collaboration
Jury Announced for Epson's First Ever Win-A-Robot Competition in Europe, The Mid...
Over 2,000 Cyclists Took Part in the Cycle Challenge of the Year
Spinneys Dubai 92 Cycle Challenge | Road Closure Timings
His Highness Sheikh Saud discusses collaboration with British Consul-General And...
Listen to the Autism Beat Gala Dinner at Atlantis - The Palm
SAVEX 11 TO 15 DECEMBER 2018
Bawabat Al Sharq Mall is all set to welcome an exciting festive season with 'Wi...
Arla Foods launches initiative with UAE Ministry of Education to promote healthi...
CBUAE and Central Bank of China meet to Enhance Renminbi Clearing in the UAE
Al Hosn Now Open to the Public
It's a Wrap! The Second JLT Restaurant Awards Conclude with a Glitzy Ceremony At...
Julphar to Launch Wearable Insulin Delivery Device in GCC
Joe's Backyard Opens at the Holiday Inn, Dubai Festival City
Young Emirati Champion Rashid Al Dhaheri Powers Ahead to Stunning Victory at the...
Dubai Islamic Bank triumphs at Islamic Business and Finance Awards 2018
University of Balamand Dubai and Emicool agree MoU for student scholarships
Cosy, chic coats from Marks & Spencer
Health Authorities advocate early screening for prevention of cardiovascular disease.