LG Says Strategy Is Paying Off
In his keynote address at the LG Summer Line Show in New York, LG Electronics president Teddy Hwang said strategic investments and cost efficiencies have helped the company achieve record-high sales and operating profits for the second quarter.
On a global basis, sales increased 12 percent to $11.2 billion, resulting in a 6.1 percent operating profit, Hwang said. Home entertainment global revenues, he said, were up 19 percent to about $3.5 billion; mobile communications sales increased 26 percent to about $4 billion; and home appliance revenues increased by about 10 percent to $1.8 billion. LG's air conditioning and business solutions units reported operating profits with sales remaining flat to slightly down.
North America now represents about one-quarter of LG Electronics global revenues, Hwang said. He noted that LG invested 3.7 percent of global revenue in R&D. "And, we're making a similar investment in 2009," he said. "This is crucial to product leadership."