LG Elec CEO: Too early to count on weak won

SEOUL, March 23 (Reuters) - It is too early for LG Electronics Inc (066570.KS: Quote, Profile, Research, Stock Buzz) to figure out the size of benefits from the weakening won <KRW=>, its chief executive said, voicing concerns over rising commodity prices and a slowing U.S. economy.

Nam Yong, CEO of the world's No. 5 mobile phone producer and top maker of household air conditioners, recently warned the company against complacency, LG said in a statement on Sunday.

A softer won helps South Korean exporters compete as they can price their goods more attractively in foreign markets than Japanese and other rivals. Overseas sales accounted for 78 percent of LG's revenue in the fourth quarter of last year.

The won has fallen 6.7 percent against the dollar so far this year.

The won's recent weakness, combined with the strong outlook at LG's flat-screen joint venture LG Display (034220.KS: Quote, Profile, Research, Stock Buzz), has boosted LG share prices.

The stock has risen 16 percent so far this year, well outperforming a 13.2 percent fall in the wider market .

"The foreign exchange rate is a double-edged sword," Nam said, adding that the Chinese yuan's strength is hurting exports from its Chinese production units.

Nam also said costs for its appliance products were rising due to higher raw material prices. Rising costs of home appliances are burdensome and the subprime problem could hurt U.S. consumer sentiment, he said.

LG has no immediate plan to revise its internal earnings goals but may revise its second-half forecasts in light of the changes in the foreign exchange rate and global commodity prices, the company added in the statement.

LG is expected to post 1.86 trillion won ($1.86 billion) in net profit in 2008, 52.5 percent up from 1.22 trillion won earned last year, according to Reuters Estimates. ($1=1002.9 Won) (Reporting by Rhee So-eui; Additional reporting by Cheon Jong-woo; Editing by Michael Urquhart)