LG Electronics posts revenues of $318.1 million USD in fourth quarter

LG Electronics posts revenues of $318.1 million USD in fourth quarter

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LG Electronics reported revenues of 312.2 billion won ($318.1 million USD) in the fourth quarter ending December 31. The figure is nearly double the 181.9 billion won estimated by seven analysts polled by Reuters. Contributing factors to the increase in revenue are robust mobile handset sales and earnings from its flat-display joint venture.

However, South Korea’s strengthening currency could dampen LG’s earnings or prospects. A strong won would adversely affect their income since 80% of the company’s revenue is sourced abroad. The won gained 2.9% against the dollar in the fourth quarter. The percentage now stands at 3.7%.

Still on forecasts, LG is expected to post 1.09 trillion won in net profit for 2006. This figure is 55% more than last year’s 702.8 billion. And even though handset sales are expected to be quite weak in the first half of the year, sales are expected to pick up later in the year.

The company expects that the mobile handset industry would continue to grow. It is set to take advantage of the trend and plans to sell 70 million mobile phones in 2006, 27% more from the 55 million units sold in 2005. As it is, the company has already sold 16.2 million handsets, a milestone for LG. It is now relying on its new touch-pad slider phone named “Chocolate” to boost handset sales in 2006.

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