LG, the world's No.3 mobile phone maker, said its handset margins held up well in the three months ended March, while sales of flat screen LCD TVs jumped by more than a third from a year ago.An improving brand image and price competitiveness from a weaker won are helping the South Korean company expand market share in mobile phones and LCD TVs at the expense of struggling foreign rivals, even in the midst of the current downturn.
"The results are much better than expected, and its strong line-up in cellphones, home appliances and TVs appears to have helped it gain market share against rivals and outperform in a tough global economic environment," said Chung Sung-Ho, an analyst at KB Investment & Securities.
"A weaker won has also helped it boost sales and LG is likely to continue to perform well this year."LG said it expected to increase total sales by more than 10 percent in the second quarter from the first, boosted by strong revenues from air conditioners, a key unit. LG also said it aimed to increase mobile phone sales by more than 10 percent in the second quarter from the first.
LG, which trails Nokia and Samsung Electronics in mobile phones, sold 22.6 million handsets in the first quarter, down from 25.7 million units sold in October-December.LG posted a 6.7 percent operating profit margin in handsets, up from 5.2 percent in the fourth quarter. Market leader Nokia's margin was 10.4 percent.
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