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Follow on Google News | LG Announces First-Quarter 2011 Financial ResultsProfit Recovery on Track with Strong Line-up of High-End Products and Results of Aggressive Cost Saving Efforts
By: Pencell PR Sales and Profit LG posted consolidated first quarter 2011 revenues of KRW 13.2 trillion (USD 11.7 bil-lion) a 0.4 percent decline in won from the same period last year (up 2 percent USD). Af-ter two consecutive quarters of losses, operating profit turned the corner with KRW 131 billion (USD 116 million). LG recorded a KRW 16 billion (USD 14 million) net loss this quarter mainly due to a KRW 56 billion loss (USD 50 million) on investments in affiliated companies. LG Home Entertainment Company posted a revenue decrease of 4.8 percent to KRW 5.3 trillion (USD 4.7 billion) compared with the first quarter of 2010, reflecting slower demand and average selling price decline. However, LG shipped more flat panel TVs in the first quarter, 6.8 million units, a 13 percent increase from the same period last year. Thanks to cost-cutting efforts, the company saw progress in its turnaround quarter-over- LG Mobile Communications Company first-quarter revenues decreased by 8.3 percent year-over-year to KRW 2.9 trillion (USD 2.6 billion). While overall handset shipments declined quarter-over- LG Home Appliance Company saw 13.4 percent increase in revenues year-over-year with KRW 2.7 trillion (USD 2.4 billion). First-quarter 2011 operating profit was KRW 103 billion (USD 91 million). Revenues increased in the overseas markets due to strong sales in North America and continuous growth in emerging markets such as Russia, India and other Asian markets. The company will continue to launch market-leading products while investing in new business areas and maintain profitability despite concerns over some component availability in the aftermath of the Japan earthquake and rise in raw material costs. LG Air-Conditioning and Energy Solution Company first-quarter revenues grew 23.8 percent year-over-year to KRW 1.45 trillion (USD 1.3 billion) with operating profits of KRW 39 billion (USD 35 million). The company saw strong growth in Korea, the Americas and CIS markets with strategic offerings such as Multi V commercial air conditioning and Inverter products. Despite potential risks with political instability in the Middle East and Africa and cooler than expected weather in Asia, the company expects to see a growth in demand for both residential and commercial air conditioners as the peak selling season approaches. Continuous investments in LG’s business-to- 2011 2Q Business Direction and Prospects LG Electronics expects to see solid growth in the second quarter of 2011 with the start of the high season for air conditioners, continued momentum in home appliances, and aggressive global sales of LG CINEMA 3D TVs and Optimus smartphones. LG will continue to introduce new products in major categories including smartphones while investing persistently in R&D and marketing. 2011 1Q Exchange Rates Explained LG Electronics unaudited earnings results are based on IFRS (International Financial Reporting Standards). Amounts in Korean Won (KRW) are translated into US Dollars (USD) at the average rate of the three month period in each corresponding quarter: KRW 1,123 per USD (2011 1Q) and KRW 1,145 per USD (2010 1Q). Earnings Conference and Conference Call LG Electronics will hold a Korean-language earnings news conference on April 27, 2011 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeouido-dong, Yeongdeungpo- Media information Sana Zahid Pencell PR Account Executive End
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