LG Electronics Q3 net down 93 pct on weaker demand

(ATTN: REWRITES lead; UPDATES with details from 4th para)
SEOUL, Oct. 20 (Yonhap) -- South Korea's LG Electronics Inc. reported Monday that
its third-quarter earnings plunged more than 90 percent from a year ago due to a
decline in consumer demand and the depreciation of the local currency weighing
down on the company's foreign exchange debts.
Net income reached 24.9 billion won (US$19 million) in the three months ended
Sept. 30, down 92.7 percent from a year earlier, the company said in a regulatory
filing.
Sales, however, rose 21 percent on-year to 6.89 trillion won, and its operating
profit more than doubled to 337.6 billion won, the company said.
The company recorded its first profit drop in six quarters as the weaker won
raised the cost of foreign exchange debt and a global economic slowdown dragged
down consumer demand of mobile phones and appliance goods.
The world's fourth-largest mobile phone maker said it sold 23 million handset
units during the quarter, down 27.7 percent from the second quarter, due to a
slowdown of phone demands in emerging markets.
Operating profit margin from its handset business also dropped to 11.5 percent,
compared to a 14.4 percent ratio in the previous quarter.
The company's appliance business recorded sales of 3.22 trillion won, up 15
percent from last year. Its sales in North American and European markets recorded
losses from the subprime mortgage crisis but stronger business in Asian and
Middle Eastern markets boosted overall business.
"We will focus on raising profitability in the appliance division by increasing
sales of premium products and may possibly benefit from an expected drop in raw
material costs," the company said in a statement.
Despite seasonal factors, LG forecasted for its display business to decline in
the near future due to strong competition amid a global glut, and also expected
weaker growth rate of handset sales in emerging markets.