Third-quarter declined 93 percent to 24.9 billion won ($19 million), from 339.2 billion won a year earlier, Seoul- based LG said in a communication today. Electronics.

Oct. 20 (Bloomberg) -- , Asia's second- largest maker of responsive phones, reported its before be advantageous cast off in six quarters after the weaker won drove up the rate of foreign- currency debt. Third-quarter declined 93 percent to 24.9 billion won ($19 million), from 339.2 billion won a year earlier, Seoul- based LG said in a report today.

Profit missed the 324 billion won median bulge of 10 analysts surveyed by Bloomberg, while proceeds rose 21 percent to 6.89 trillion won, beating estimates. Currency-related losses jumped 13-fold as the won, the worst-performing paramount Asian currency this year, overshadowed higher sales of travelling phones and televisions. LG's may capitulation until the earliest half of 2009 on slower requisition for handsets and TVs as the credence emergency threatens to throw the broad terseness into recession, according to JPMorgan Chase & Co. ''The fourth three-month period is worrying because it's on the whole the involve time for electronics makers and we're skin slowing monetary wen worldwide,'' said , a stake administrator at Seoul-based Yurie Asset Management Inc., which manages the close of $1.1 billion in equities. ''I'm planning to mitigate our weighting of LG shares.'' Operating income, which excludes currency-related losses, more than tripled to 337.6 billion won, compared with the 360 billion won estimated in the survey.

The median viewpoint projected income of 6.5 trillion won. LCD Contributions LG Electronics rose 1.8 percent to not far at 97,100 won on the Korea Exchange after climbing as much as 3.7 percent. The shares have 2.9 percent this year, compared with the benchmark Kospi index's 36 percent drop.

Contributions from subsidiary , the world's second-largest maker of LCDs, halved to 100 billion won as a overflow in the $89 billion diligence drove down panel prices. LG Electronics owns a 38 percent palisade in the unit. Currency-related losses puffy to 389.5 billion won from 29 billion won a year earlier as the weaker won increased the expense of transalpine liabilities.

JPMorgan estimates 95 percent of LG's responsibility is denominated in extraneous currency. The reassuring crash of a falling won on the operating help ''will be counterbalance by the pointed defeat caused by its marvellous debt,'' J.J. Park, an analyst at JPMorgan, said in a note finish week.

A weaker won increases the value of abroad compensation when repatriated. Worst Performer LG Electronics said in July it would take over an reciprocity reprove of 1,000 won to the dollar for the third quarter. The won, currently around 1,300 against the U.S. currency, is Asia's worst-performer this year as banks and companies sought dollars to care debt, while turmoil in wide-ranging fiscal markets made overseas borrowing more expensive.

In the history month, analysts at JPMorgan, Citigroup Inc. and BNP Paribas SA have detached their value estimates on LG Electronics for this year and 2009 because of humble contributions from LG Display and losses relating to alien exchange. Third-quarter serve at the discord more than doubled to 384.3 billion won, higher than the 350 billion won projected in the survey.

Shipments rose 5 percent to 23 million handsets. The entity is the biggest contributor to totality revenue, accounting for 45 percent in the quarter, compared with 38 percent continue year. LG joined smaller against Sony Ericsson Mobile Communications Ltd. in reporting mobile-phone stipend that exceeded analyst estimates in the existence week.

Market director in week reported a 30 percent slither in third-quarter gain as prices mow and it irremediable customer base partition in high-end devices. Mobile-Phone Market Worldwide mobile-phone sales will bourgeon 8 percent this year, researcher Gartner Inc. said matrix week, less than its before-mentioned calculation of 10 percent to 11 percent, as consumers subdue spending on late handsets and forewarning up for longer contracts. LG maintained its handset-shipment foretell for this year of 100 million units, the caller said in a allegation today. LG said profitability at its mobile-phone set will be left above 10 percent in the prevailing patch because of higher shipments and the introduction of budding models. Nokia had 41.1 percent of the worldwide mobile-phone market-place in the two shakes quarter, followed by Samsung Electronics Co., which is scheduled to announce take on Oct. 24, with 15.4 percent, according to Boston-based Strategy Analytics. 's allotment was 9.5 percent and LG Electronics had 9.3 percent.

LG's flourish division, which sells and plasma screens, posted a 117.7 billion won loss, narrowing from 160 billion won a year earlier. The Bloomberg contemplate projected a deficiency of 56 billion won. Sales at the unit, which is distinguish from LG Display, rose 8.6 percent to 1.51 trillion won.

LG Electronics may pillar a reduction from the array trade in 2009 because of falling TV prices and inefficient plasma-panel operations, JPMorgan's Park wrote in a circulate at the rear week. Profit at the home-appliances division, which competes against and Electrolux AB, rose 9 percent to 70.8 billion won. That compares with the 60 billion won median assess in the Bloomberg survey.

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