LG Reports Q1

LG announces first-quarter 2011 financial results

April 27, 2011

2 Min Read

SEOUL -- Showing significant progress on its profit recovery, LG Elec-tronics (LG) today announced unaudited financial results for the three-month period ending March 31, 2011. Stronger operating profits reflected successful cost-reduction efforts and steady performance in all four business units. The company expects to see further growth with strong line-up of strategic products such as the CINEMA 3D TVs adopting Film Patterned Retarder (FPR) technology and smartphones under the LG Optimus brand.

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-quarter, posting a KRW 82 billion (USD 73.1 million) operating profit in the first quarter. An aggressive product line-up, led by CINEMA 3D TVs and Smart TVs, is expected to continue to drive profits and expand market share for the Home Entertainment business.

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-quarter as a result of slow seasonality, operating profit showed sig-nificant improvement in the first quarter due to an increase in smartphones in the company's portfolio and reduction in overhead costs. The company expects to improve its product mix by launching new smartphones including the LG Optimus Black and the LG Optimus 3D and gain profitability by further cutting costs.

LG Electronics Inc. (London: LGLD; Korea: 6657.KS)

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