LGE Plasma HD TV with built-in
DVR Gains Reputation
2Q sales total 5.6 tln won; net profit 151 billion won
LG Electronics 50-inch plasma HD TV and 32-inch LCD TV have received strong commendations in the US and Germany for their user-friendly functions, outstanding picture quality and sleek designs. The premium display products were reviewed by the highly regarded US IT magazine Sound & Vision, and Germany's HiFi Test magazine.
Sound & Vision described the LG Electronics 50-inch plasma HD TV with built-in DVR (50PY2DR) as a "HDTV first". Featuring in the July issue of the magazine, the HD TV was praised for its 'ultrarealistic, three-dimensional detail' and high-DVD picture quality which was applauded for its solid colour and crisp images.
The magazine praised the DVR's recording features for their ease of control, well-organized list and previously unseen HDR extras, including the ability to store and play digital photos and music files, which are loaded from a pair of versatile flash memory card slots on the side of the TV.
Germany's HiFi Test magazine* reviewed nine 32-inch LCD TVs and gave top honors to LG Electronics. The LG Electronics 32-inch LCD TV (32LP1R_ was especially praised for its high picture and sound quality as well as its unique design. The review made special mention of the LCD TV's strong black levels, contrast ratio and response time display together with its theatre-like audio quality.
These solid review by highly regarded technology publications are a testament to LG Electronics growing influence in two of the major international Flat Panel Display (FPD) markets, the US and Germany. LG Electronics is using its strong expertise in digital TV-related categories, including core chipsets, display parts, software, and source technology related to digital TV transmission, to make inroads into the rapidly growing FPD market.
The global electronics giant goal is to be the number one LCD and PDP TV player by 2007.
2Q performance
Kwon Young-soo, chief financial officer of LG Electronics,
announced the second quarter performance at the Korea Stock Exchange on July 18. Sales reached 5,615 billion won (export: 4,150 billion won, domestic sales 1,466 billion won), down by 6.9% year-on-year and 5.8% quarter on quarter. LG Electronics generated 144 billion won in operating profit (2.6% margin) and 151 billion won in net profit (2.7% margin). Recurring profit reached 216 billion won (3.8% margin).
While domestic sales increased as seasonal products sales grew, the overall sales fell 7% due to the continuing Won appreciation and slowdown in exports. Second quarter profit was down year-on-year due to the decrease in profitability of handsets and Display products.
Sales from Digital Appliances Company declined 6% year-on-year to 1,621 billion won (domestic 765 billion won, export 856 billion won). Domestic sales were up by 32% year-on-year due to strong sales of air conditioners. Exports decreased by 25% year-on-year due to the won appreciation. Operating profit reached 162 billion won with a 10% margin.
Sales from Digital Display Company fell by 2% year-on-year to 1,155 billion won (domestic 254 billion won, export 901 billion won). Sales of DTV were up by 42% year-on-year, with plasma TVs increasing by 80% and LCD TVs by 192% year-on-year. Total amount of PDP module units grew 113%. Due to falling prices this division recorded operating loss of 22 billion won. However, Plasma TV profitability improved.
Sales from Digital Media Company dropped by 18% year-on-year to reach 732 billion won. (domestic 157 billion won, export 575 billion won). Domestic sales rose as PC brand sales increased. However, exports decreased year-on-year due to the won appreciation and price decline. Operating profit reached 27 billion won with a 3.7% margin. nw

LG Electronics CEO S.S.Kim