Earnings: LG Sells Record Number Of Phones Despite Poor Economy

LG (SEO: 066570) said it achieved an all-time sales record in the second quarter due in part to selling a record number of mobile phones, despite the economy hurting the overall market for phones. Release.

The South Korean electronics manufacturer explained in a WSJ earlier this week how the company has increased mobile phone sales. It appoints a single person to be responsible for each of the 50 mobile phones it ships each year, thereby increasing responsibility and enabling the company to adjust quickly to market demands.

2Q 2009 2Q 2008 Analysts Estimates For 2009
EPS N/A N/A NA
Net Income 1.15 trillion won ($888B) 707 billion won
Revenue 14.5 trillion won ($11.2B) 12.74 trillion won

Mobile phone performance: The technique is clearly paying off. The company sold 29.82 million phones in Q2, setting a all-time record. LG is the third-largest handset manufacturer worldwide. LG also pointed to robust sales of TVs with liquid crystal displays. Phone sales recorded an increase of 7.8 percent year over year, and a 32 percent jump compared to the second quarter 2008. Strong sales were due to the popularity of mid-tier models such as the full touchscreen Cookie phone, the Qwerty messaging phone (LG-KS360), the multimedia Arena, the enV3 with Qwerty and the enV Touch with Qwerty.

Forecast: LG said the overall mobile phone market will likely fall by 6 percent in the third quarter compared to last year for a total of 280 million phones, but it still expects to grow due to the introduction of high-end devices. Looking ahead, LG says it expects growth to continue, and sales to jump by around 10 percent because of demand for TVs and mobile phones.