LG Electronics announced yesterday financial results for the first quarter of 2012, with a net profit of $214.9 million after two consecutive quarters of net losses, as a result of company’s efforts to innovate in all key business segments. According to unaudited results for the first quarter of 2012, based on International Financial Reporting Standards, LG recorded consolidated revenues totaling $10.8 billion, with operating profit of $396.1 million. These results are compared to consolidated operating profit of $280 billion for the year 2011.
LG Home Entertainment Company recorded a significant increase in operating profit for the first quarter compared to same period of the previous year. Sales were $4.7 billion, down 6.8% from the first quarter of 2011 due to the economic situation in Europe. Following the success in Korea by the Cinema Screen 3D Smart TV and as a result of improvements in the distribution network, operating profit was almost double, reaching $191.9. Moreover, the new series of LG TVs to be launched this year, and sporting events to come, will lead to an increase in demand for home entertainment products segment.
LG Mobile Communications has tripled its profit
LG Mobile Communications has tripled profits in the first quarter of 2012 compared with the same period of previous year, reaching $34.5 million, following a portfolio with a better product mix and increased sales on the smartphone segment. Revenues were down 14% from the previous year, reaching $2.2 billion, following the decline in sales of phones with basic functions, while sales of smartphones have increased following the success of models Optimus VU and Optimus LTE. The company will strengthen its smartphone segment in the second quarter by introducing L-Style series and quad-core.
LG Home Appliance in the first quarter 2012 had an operating profit of $134.4 million, up 48% over the same period of the previous year due to higher selling price, a better product mix and cost-effectiveness from year to year revenue which was down 2.7% to $2.2 billion, reflecting declines in China and developed markets. Despite the decline in major markets and the increased cost of raw material production, the company will continue to allocate resources effectively and to develop differentiated products such as the Blast Chiller refrigerator.
LG Air Conditioning and Energy Solutions have recorded a double operating profit compared to the same period of the previous year, reaching $71.6 million, thanks to new premium products and improved cost structure. First quarter revenues were down 1.2% from the previous year, reaching $1.1 billion. The company is confident that the new government regulations that promote efficient use of energy, both in residential and in business will create growth opportunities for commercial air conditioning units with high efficiency.
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