LG handset sales grow 38.6% in Q2

LG Electronics reported second-quarter revenues from its mobile communications business of KRW 3.85 trillion, up 34.3 percent from a year earlier. Handset sales rose 38.6 percent to KRW 3.75 trillion. The handset operating margin improved to 14.4 percent thanks to growth in high-end models and improvements in operational efficiency. The Korean company shipped in total 27.7 million phones during the quarter, up from 24.4 million in the first quarter, led by its popular Black Label series and growth in North America and strong emerging markets such as the Middle East, India, the CIS and Latin America. The strong mobile results helped LG's total quarterly sales increase 22.1 percent to KRW 12.74 trillion and net profit to grow to KRW 707 billion from KRW 385 billion a year ago. For the third quarter, LG warned that the global economic slowdown could impact sales. The market slowdown could lead to tougher competition and pressure on selling prices. LG said it will respond to market demand with "appropriate" prices and focus its marketing on its premium phones, while maintaining double-digit profit margins