Air-conditioners and LCD TVs came to the rescue of the electrical-goods industry in the first quarter, spurring growth for manufacturers at a time when consumers are tightening their purse strings. Appliance makers including Toshiba, Mitsubishi, Panasonic, LG and Samsung recorded unexpectedly high growth rates of between 6% and 26% during the period, compared to 5% for the overall industry.

Toshiba (Thailand) Co and LG Electronics (Thailand) reported spikes in sales of their LCD TV sets of 100% and 500% respectively in the first three months of the year compared to the same period last year.

Sales of air-conditioners also picked up after a slump last year.

''Overall demand for air-conditioners dropped by 10% last year due to political conflicts. But the hotter weather in February and March this year drove the overall sales of Mitsubishi in the first three months of this year to exceed our earlier projection by 90 million baht,'' said Anun Bunjerdtum, general manager for marketing and sales division at Mitsubishi Electric Kang Yong Watana Co, the distributor of Mitsubishi-brand products.

He added in the first 10 days of April alone, sales of Mitsubishi air-conditioners increased by 30% for normal levels.

Power Buy Co, the appliance and consumer electronics retail chain of the Central Group, installed 300 to 400 air-conditioning units a day this month, according to president Suthisarn Chirathivat.

Despite the better-than-expected sales during the period, the margins of most manufacturers sharply dropped in line with lower prices. In particular, the prices of LCD TVs have shrunk by 40-70% depending on models _ those of 40-inch models are now around 40,000 baht, compared to 80,000-90,000 baht last year.

Major producers hope the 60-billion-baht electrical-appliance market will improve in the second quarter. Sales are expected to grow by 8-10% this year, driven by innovative products and full product-line expansion.

''The downward trend of interest rates has sent a positive signal to property projects and automotive businesses and improved the confidence of foreign investors,'' said Kobkarn Wattanavrangkul, the chairperson of Toshiba (Thailand).

Like other major manufacturers, Toshiba finds it increasingly hard to compete in the local market, according to Mrs Kobkarn. ''We now make major changes to Toshiba refrigerators every year, compared to every two or three years in the past.''

At Panasonic, hopes rest on plasma and LCD TVs as the main drivers of sales this year.

It aims to become the market leader in plasma TVs and the second largest LCD TV brand this year, according to Hiroyuki Moto, sales and marketing director at Panasonic Siew Sales/AP Sales Co.

Panasonic also forecast sales in the 2007 fiscal year to grow by 8%, compared to 10% in 2006, he added.

LG also found its domestic sales in the first quarter grow by 26%, largely due to the sales of 50,000 LCD TV sets during the period, compared to 10,000 sets sold in the five months after launch last year, according to deputy managing director Alongkorn Chujit.

The South Korean brand hopes to achieve sales of 13 billion baht locally and 24 billion baht for the export market.

Mr Suthisarn of Power Buy projected sales this year to reach 12 billion baht, up 10% from last year. To achieve the goal, 10 more outlets and two new repair centres will be opened this year.

Power Buy plans to spend 50 million baht on the PowerBuy Expo 2007, to be held from April 27 to May 7 at Central Plaza Lat Phrao. It expects about 500,000 visitors and 380 million baht in sales.