LG Electronics has today announced a net profit of USD. 99.6 million in its unaudited consolidated second quarter financial results for the three month period ending June 30th, 2011.According to George Mudhune, Head of Marketing & Corporate Communication, LG Electronics, East and Central Africa, the turnaround in net profit reflected steady improvements in its businesses and successful cost-reduction efforts, in line with analysts’ estimates. “After two consecutive quarters of losses, we are back on our feet to make a turnaround net profit in this quarter. I would attribute this to the stringent measures of cost cutting that we had put in place due to the slow growth of the global economy impacted by high global inflation triggered by spiraling high fuel prices.”

Mudhune said the company also managed to register an operating profit of USD 145.8 million, a 21 percent increase from the previous quarter and a 25 percent increase from the previous year, driven by higher profitability from the TV business and reduced losses in handsets.
Bullish of the third quarter, Mudhune said the company expects to see modest growth year-over-year in the third quarter of 2011 with new product launches in major categories and creative marketing activities across its various 3D products.
The Home Entertainment business unit posted a quarter-over-quarter sales increase of 2.7 percent to USD 5 billion attributing it to higher revenues from LED LCD TVs, its new CINEMA 3D TVs and general business growth in developing markets.
The Mobile Communications business unit reported an 11.6 percent increase in sales in the second quarter compared to the previous quarter, to USD 3 billion. The unit continues to strengthen its global competitiveness by launching a mix of competitive smartphones and its continued investment in R&D.
Home Appliance business unit posted record-high quarterly sales of USD 2.7 billion from April to June 2011, a 6.9 percent increase from the previous quarter and a 6 percent increase year-over-year, primarily due to strong sales in emerging markets. The unit intends to maintain its market leadership by introducing more energy-efficient and “smarter” products in the second half while continuing to control costs.
Air Conditioning and Energy Solution business unit grew its second quarter revenues by 29.2 percent quarter-over-quarter and 15.3 percent year-over-year to USD 1.7 billion by focusing on product quality and launching new products with superior features.
“For the long-term, the company will continue to strengthen profitability through aggressive cost innovation and strategic investments in existing as well as new business areas” concluded Mudhune.