(RTTNews) - LG Electronics Inc. (LGERF.PK: News ) reported Wednesday a significant growth in its third-quarter profit, boosted mainly by strong gains from foreign exchange and affiliates. Quarterly sales, on a parent basis, grew 14.2%, and consolidated sales climbed 23.5%, driven particularly by rising demand for flat panel TVs and strong handset sales growth. Looking ahead, for the fourth quarter, the South Korean consumer electronics and mobile communications company expects modest year-on-year and sequential sales growth, but lower sequential profitability.

On a parent basis, third-quarter net profit was 807 billion won or US$650 million, up from 25 billion won a year earlier. The latest quarter results included foreign exchange gain of 71 billion won or US$57 million, and equity method gain of 368 billion won or US$297 million from overseas subsidiaries and affiliates. LG Display, in which LG Electronics owns a 37.9% stake, recorded an equity method gain of 210 billion won or US$169 million in the quarter.

Recurring profit, equal to pre-tax profit from continuing operations, on a parent basis was 1.027 trillion won or US$828 million, up from 34 billion won in the year-ago quarter. Operating profit rose 70% to 603 billion won or US$486 million from 338 billion won in the prior year, and EBITDA grew 47% to 752 billion won from 511 billion won in the previous year.

On a sequential basis, LG Electronics' third-quarter net profit, on a parent basis, fell 30% from 1.146 trillion won or US$888 million and recurring profit dropped 27% from 1.408 trillion won or US$1.09 billion reported in the second quarter.

The company's quarterly sales, on a parent basis, grew 14.2% to 7.87 trillion won or US$6.34 billion from prior year's 6.89 trillion won. Domestic sales dropped 2.4% year-over-year to 1.70 trillion won, while export sales climbed 19.8% to 6.17 trillion won.
On a consolidated basis, total sales for the quarter climbed 23.5% to 18.86 trillion won. Global sales, based on LG Electronics Korea and overseas subsidiaries, rose 15.7% to 13.90 trillion won or US$11.2 billion from 12.01 trillion won in the prior year. LG Display sales surged 54.7% to 5.97 trillion won, and sales from Other Affiliates grew 18.2% from last year to 1.31 trillion won.

Sequentially, parent sales fell 7.2% from second-quarter's 8.48 trillion won, or US$6.57 billion, and global sales dropped 4.1% from 14.497 trillion won, or US$11.23 billion, while LG Electronics' total consolidated sales in the quarter edged up 1.1% from second quarter's 18.66 trillion won.

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