/24-7PressRelease/ - AMMAN, JORDAN, February 05, 2008 - LG Electronics (LGE), a global leader in consumer electronics and mobile communications, announced its unedited consolidated earnings results for the three-month period ended December 31, 2007.
Thanks to stable operations from all business divisions, reports issued by LGE reveal that sales soared to the company's record-high level. Sales in the fourth quarter of 2007 jumped 12%. This figure was calculated in comparison to figures published for the corresponding time period from the last financial year. This 12% increase caused LGE's annual sales to reach a total of USD 11.85 billion. Net profits on parent basis for the same time period were calculated to be USD 674 million. Operating profit were recorded at USD 414 million, thus making the profit margin rise to reach 3.5%, which in turn translates into a 1.9% increase when compared to corresponding figures from the previous year.
LGE's 2007 annual sales increased by 11.2% to reach a total of USD43.97 billion. Operating and net profits were recorded USD 1.32 billion and USD 1.315 billion respectively. Consolidated sales including subsidiaries have risen by 15.2% throughout this current financial year thus reaching a total of USD 57.46 billion. Operating profits were recorded at USD 3.04 billion. According to these earnings, LGE's profit margin was calculated to be 5.3%, which is significantly higher to the profit margin calculated for the previous financial year. .
From its end, the LGE Mobile Communication Company achieved record-high sales recording a sales total of USD3.312 billion which in turn translate into 10.3% increase when compared to corresponding figures from the fourth quarter of 2006. Sales from the handset business reached a total of USD 3.167 billion which in turn translates into a 12.2% raise when compared to corresponding sales records published for the last financial year. The shipment of handsets was recorded to be the highest in unit sales as well with a total of 23.7 million units shipped globally. Shipment boosted in developed markets, thanks to strong sales of LGE's "Voyager" and "Venus" models and its United States "Viewty" models throughout the EU.
Operating profit margins within the LGE handset division improvised to 8.7%, 8.8% this improvement was attributed to higher premium model portion and better cost competitiveness. The outlook for the following coming ahead continues to be bright in mobile handset unit sales and profits with expected growth centered on emerging markets.
LGE's Digital Appliance Company sales rose by 5.1% to reach a total of USD 2.685 billion . This increase is primarily attributed to continuous sales boost of commercial air conditioners sales in Korea and a corresponding steady growth in India, the Middle East & Africa regions. Operating margin resulted in 4.3% increase due to increased marketing expenditure.
LGE Digital Display Company sales jumped to the company's quarterly historic high of USD 4.308 billion which in turn translate into a 24.1% increase when compared to corresponding figures published a year earlier. This increase is powered by a rise in sales of plasma and LCD digital TV sets. Operating loss was reduced to USD 12 million. This positive change is primarily attributed to a sales surge of flat panel TVs and an improvement in PDP modules from robust 32 inch line-ups.
The expected price cuts within the 40 plus inches large sized flat panel TV market and the upcoming Beijing Olympic Games are both factors that are expected to help boost the demand within this sector throughout 2008. The launch of slim size and innovative design based plasma and LCD digital TVs will drive the company's strong growth. Sales from the LGE Digital Media Company were reduced by 4.1% this year to reach a recorded sales earning of USD 1.553 billion, while operating profit and margin posted USD 29 million and 1.9% due to strong sales of media products.
Parent basis sales and operating profit were recorded to be USD 6.379 billion and USD 167 million respectively. Recurring profit and net profit jumped by 1199% to reach a total of USD 833 million, and 1168% to reach a total of USD 674 million. This sales rise is attributed to an equity method gain of USD 846 million from affiliates and overseas subsidiaries. LGE .Philips LCD, its 37.9% stake owned subsidiary, booked gain of USD 324 million remarkable turnaround from a early earlier loss of USD 23.1 billion.
Commenting on these impressive sales earnings, General Manager of the LGE Amman Branch Mr. Kevin Cha said, "We are proud to see LGE perform so well throughout the year of 2007. LGE's air condition sales have seen a phenomenal rise across the Middle East region and we on our part predict that other flagship products from LGE will soon follow suit. Prospects for the New Year should be for LGE to continue to improve market leadership and profitability in handset and digital media and appliance business. Anticipated shipments in handsets are expected to reach a total of 100 million units in display division, LGE also aims to increase market share in flat panel display TVs markets, expecting 17 million in unit sales, and it is also to work to turn around the company's profitable position in global market. "
TRACCS Jordan
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