Home entertainment booming for LG11 August 2010
The manufacturer registered strong sales in its home entertainment and appliance business units during Q2 2010. Demand for flat panel TVs contributed to a 4% increase in revenue for the LG Home Entertainment Company (+19% from 2009), resulting in sales of $4.6 billion and operating profit of $24 million.
Expansion of the premium product line-up and the launch of new LED TV products, says LG, will continue to drive Home Entertainment profits in Q3.
The LG Home Appliance Company also performed creditably, recording 16.5% year-on-year growth, while the LG Business Solutions Company registered a 14.7% year-on-year sales increase. There was a modest sales increase for the LG Air Conditioning Company (+0.3% y-o-y), but LG Mobile Communications recorded a drop in operating profit margin for handsets y-o-y due to investment in R&D and expansion in emerging markets.
Overall, net profit in the second quarter of 2010 increased by 27% quarter-on-quarter to $736 million due to profits from discontinued operations as a result of LG Innotek being excluded from LG’s consolidated figures.
Looking forward, the company expects to enjoy "modest growth" in Q3 as economy recovery solidifies, and says that it will continue to introduce new products in major categories and invest "aggressively" in R&D and marketing efforts.