Tokyo Correspondence - The takeover of the activities of LG Electronics by Koo Bon-joon, head appointed on 1 October 2010, seems to give its first results. Admittedly, according to data released April 27, the giant South Korean consumer electronics ended the first quarter 2011 net loss of 15.7 billion won (9.9 million), cons 674.6 billion won (425 million euros) net profit a year earlier, and sales have declined slightly from 0.4% to record the first three months of 2010, 13 160 000 000 000 won (8.3 billion euros).
But the company has returned to operating profits, to 130.8 billion won (81 million), after two consecutive quarters in the red. This result shows that the decline that began in 2010 seems to have abated. It also shows that the appointment of Mr. Koo, 59, younger brother of the powerful chairman of LG Group, Koo Bon-moo, had a positive effect.
Breaking with the traditional philosophy of the company, focused on unity and harmony, Mr. Koo has, since taking office, emphasized the need to be more "aggressive". He quickly imposed his leadership style found in house "dictatorial" but "sure of his decisions." Without finding the levels of early 2010, sales of televisions and mobile phones, which generate respectively 40% and 25% of group revenue, have improved.
"They have made progress in the emerging nations of Asia, Africa and the Middle East", said LG, despite a difficult environment marked by rising commodity prices, a stronger won and general decline in the prices of televisions. INTENSE COMPETITION WITH SAMSUNG The positive momentum should continue.
Arriving late to the smartphone market, which would, according to analysts, the main reason for its losses, LG has managed to catch up with models like the Optimus 2X and expects an increase in sales. LG plans to sell 30 million smartphones in 2011, and 150 million mobile terminals, or 30% more than in 2010.
The group wants to bring this activity is still in deficit in positive territory. On the TV market, competition is intensifying with Samsung in the field of 3D. The two companies use different technologies: the Active shutter glass (ASG) is the market leader Samsung. But delaying the patterned film (RPF) LG develops.
The RPF has been adopted by the Japanese group Toshiba, Philips Dutch or the American Vizio. The rivalry between the two South Korean giants in March has led to heated exchanges on the supposed faults of their respective technology. In the second quarter, LG hopes to continue its dynamic recovery, relying always on emerging markets for televisions, by being more aggressive in the mobile phone and most importantly, improving its operating margin, which does not exceed 1%. 
But the company has returned to operating profits, to 130.8 billion won (81 million), after two consecutive quarters in the red. This result shows that the decline that began in 2010 seems to have abated. It also shows that the appointment of Mr. Koo, 59, younger brother of the powerful chairman of LG Group, Koo Bon-moo, had a positive effect.
Breaking with the traditional philosophy of the company, focused on unity and harmony, Mr. Koo has, since taking office, emphasized the need to be more "aggressive". He quickly imposed his leadership style found in house "dictatorial" but "sure of his decisions." Without finding the levels of early 2010, sales of televisions and mobile phones, which generate respectively 40% and 25% of group revenue, have improved.
"They have made progress in the emerging nations of Asia, Africa and the Middle East", said LG, despite a difficult environment marked by rising commodity prices, a stronger won and general decline in the prices of televisions. INTENSE COMPETITION WITH SAMSUNG The positive momentum should continue.
Arriving late to the smartphone market, which would, according to analysts, the main reason for its losses, LG has managed to catch up with models like the Optimus 2X and expects an increase in sales. LG plans to sell 30 million smartphones in 2011, and 150 million mobile terminals, or 30% more than in 2010.
The group wants to bring this activity is still in deficit in positive territory. On the TV market, competition is intensifying with Samsung in the field of 3D. The two companies use different technologies: the Active shutter glass (ASG) is the market leader Samsung. But delaying the patterned film (RPF) LG develops.
The RPF has been adopted by the Japanese group Toshiba, Philips Dutch or the American Vizio. The rivalry between the two South Korean giants in March has led to heated exchanges on the supposed faults of their respective technology. In the second quarter, LG hopes to continue its dynamic recovery, relying always on emerging markets for televisions, by being more aggressive in the mobile phone and most importantly, improving its operating margin, which does not exceed 1%.
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