LG reports spike in Middle East sales
Growth driven in part by increased spending by consumers in Morocco and Iraq, company says.
Consumer electronics vendor LG Electronics has reinforced its position in the Middle East market by recording sales of $730 million in the region during the third quarter. Its performance between July and September brings the value of sales for the first nine months of the year to $2.40 billion.
K.W. Kim, president of LG Electronics for the Middle East and Africa, attributes the growth in sales to well-received marketing and the increased confidence of MEA consumers. "LG's Q3 success in the Middle East has been driven by a number of significant factors, chiefly the ‘Life's Good' promotion in the Lower Gulf, greater stability in MEA markets and increased spending by consumers in Morocco and Iraq," he asserted.
Kim says that he's also confident of continued growth with the release of "innovative products" such as the 32-inch plasma TV and Viewty mobile handset planned for launch in the coming weeks.
On the global stage the company saw a 12% increase on the previous term to $10.68 billion with an operating profit of $390 million for the first nine months of the year. This gives them a healthy them a profit margin of 3.6%, improving on the previous year by 1.3 percentage points.
LG's mobile communications arm reported a 4% worldwide increase in sales on the previous year to $2.84 billion, with progress in emerging markets in Latin America and the Middle East cited as a key factor for the growth. This expansion, which has reached 8.4% over the year, comes despite a drop in the sales price of mainstream mobile handsets.
The international television and computing sections of LG both showed a profit rise, with a 19% jump in sales to $3.4 billion, brought about by demand for plasma and LCD TVs, and a rise around the world in desktops and notebooks sales precipitating a 9.8% year on year increase to $1.4 million.
The company also announced it had narrowed its operating loss on its Plasma Display Panel (PDP) television modules to $31 million due to improvements in the product.