Thanks to stable operations from all business divisions, its sales and operating profit recorded increase from a year earlier. Based on LGE global results, sales in the third quarter of 2007 jumped 11.8% to 9.911 trillion won (US$10.680 billion). Operating profit recorded 362 billion won (US$390 million), which makes the profit margin at 3.6%, 1.3% point higher than the previous year.
Mobile Communication Company recorded sales of 2.635 trillion won (US$2.839 billion), 4.0% up from 2006. The company's shipment of handsets recorded the highest in unit sales, a total of 21.9 million, thanks to increase in emerging markets such as Latin America and Asia/Middle East. Despite increased portion of low end and ASP drop from mainstream models, improvements in cost structure have sustained decent profitability. Operating profit margin reached 8.4% at a stable level over last year. Outlook for a quarter ahead continues bright in mobile handset unit sales and profits, expecting a peak due to seasonality and rise in 3G.
Digital Display Company sales jumped to 3.170 trillion won (US$3.416 billion) 18.7% year by year and 16.3% quarter by quarter, powered by rise in sales of plasma and LCD digital TV at 17% per quarter and plasma panels at 21% per quarter. Operating loss reduced to 29 billion won (US$31 million) per quarter primarily due to improvement in PDP modules geared by seasonal demand and new 32 inch line-ups and turnaround in flat panel TVs and the monitor business division. Further growth is expected in the fourth quarter in 40 plus inches large flat panel TVs and great demand and popularity of full HD resolution models.
Sales from Digital Media Company increased 9.8% per year to 1.336 billion won (US$1.440 million) geared by the rise in desktop PCs in Korea and notebook PCs overseas. Operating profit and margin posted 29 billion won (US$31 million) and 2.2%, a turnaround from a year ago. Shipment of IT products is expected to increase further and higher premium product portion to lead to better profitability in upcoming high-demand season.
Digital Appliance Company sales rose 11.4% in comparison to last year to 2.785 trillion won (US$3.001 billion), but declined 22.7% per quarter primarily due to low-demand seasonality. Sales in the Korean market increased thanks to performance from premium products such as three-door refrigerators and commercial air conditioners. Steady and remarkable sales of steam drum-type washing machines in the US helped achieving overall 14% growth in overseas markets. Despite won appreciation and rise in material costs, growth came from cost innovation and expansion of premium products centered in developed markets such as US. Slowdown in the US may be seen in coming quarter due to a sub-prime economic situation, but in other markets the company expects to maintain its strong market position.
Financial statement and Non-operating items on parent basis
Parent basis sales and operating profit are 5.690 trillion won (US$6.131 billion) and 92 billion won (US$99 million). Recurring profit and net profit jumped 1169% to 387 billion won (US$417 million), and 1394% to 339 billion won (US$365 million) compared to last year, thanks to equity method gain of 399 billion won (US$430 million) from LG.Philips LCD, its 37.9 % stake owned subsidiary, and overseas subsidiaries.
