Despite the sluggish global economic recovery that has affected most electronic sales, LG expects to see modest growth in the coming months banking on competitive LTE smartphones, CINEMA 3D TVs and consumer-friendly, energy efficient appliances.
According to George Mudhune, LG's Head of Marketing and Corporate Communications, East and Central Africa, the company is focusing on strengthening profitability through more aggressive cost control and better allocation of resources.
Announcing the unaudited consolidated financial results based on IFRS (International Financial Reporting Standards) for the three-month period ending September 30, Mudhune said the company had posted global revenue of USD 11.92 billion in Q3, 4percent decrease in the same period last year.

He attributed the decrease of revenue to the global economy recession that has affected the company's overall sales in the quarter. While losses on investments in affiliated companies led to a quarterly net loss of USD 382.62 million.

However, Mudhune noted that due to cost controls and efficiency improvements, operating income improved for all four companies compared with the same period last year.

LG Home Entertainment division shipped 6.8 million flat panel TVs from July to September, the most ever in the third quarter. Revenues decreased 7 percent from the previous year to USD 4.96 billion as a result of weaker consumer sentiment in the global market. Operating profit improved 17 percent over the previous quarter to USD 93.35 million due to a stronger premium product mix of CINEMA 3D TVs and LED LCD TVs.

LG Mobile Communications division sales decreased 8.5 percent year-on-year to USD 2.55 billion. The division posted an operating loss of USD 128.47 million of which Mudhune said: "LG plans to continuously focus on the Smartphone business and increase sales of LTE (Long Term Evolution) handsets with the launch of the Optimus LTE to drive sales and profit improvements in the quarters ahead."

LG Home Appliance division posted sales of USD 2.5 billion in the third quarter, a 1 percent increase from the same period the year before, thanks to strong sales in emerging markets along with the growth of more energy-efficient and smarter products. Despite an increase in raw materials prices and global currency fluctuation, the division still managed to improve operating profit by 11 percent to USD 64.7 million from the same period the year before.

LG Air Conditioning and Energy Solution division grew its third quarter revenues by 11 percent year-over-year due in large part to strong sales in Korea, the Middle East and Latin America. The division posted an operating profit of USD 0.92 million in a traditionally slow season for air conditioners of which Mudhune remarked: "although overall demand is expected to decline in the coming quarter, the division will continue to increase sales of commercial air conditioners, chillers and heaters with the introduction of more energy efficient products."