LG’s preliminary third-quarter operating profit was 781.8 billion won, up 13.5 per cent from a year earlier but down 50.5 per cent from the previous quarter. Revenue rose annually while staying close to the second-quarter level. Appliances and vehicle components supported profitability as the company continued investment in cooling and robotics.
Economics & Markets··Evening
Profit falls sharply from the previous quarter
Electronics group LG Electronics reported preliminary third-quarter operating profit of 781.8 billion won. Profit increased 13.5 per cent from a year earlier but fell 50.5 per cent from the preceding quarter. Revenue reached 23.83 trillion won, an annual increase of 8.9 per cent, and remained close to the second-quarter level. The July–September results therefore combined annual growth with a sharp quarterly profit decline.[2], [1]
Slower external demand and less favourable exchange rates accompanied the quarterly profit decline. LG attributed its annual revenue growth to demand for core products, business sales and emerging markets, while identifying the Middle East war as a difficult operating backdrop. The company said increased sales and changes to its cost structure helped offset higher logistics, material and fixed expenses during the quarter.[2]
Appliances and vehicle components support earnings
LG said home appliances and vehicle components retained solid profitability, while television results improved annually. Appliance subscriptions, online channels and sales to other businesses supported growth. In the television business, premium products, emerging-market sales and adjustments to marketing expenditure contributed to results. The vehicle business converted existing orders into revenue, with a larger contribution from premium in-vehicle infotainment products.[1], [2]
Heating, ventilation and air-conditioning revenue remained near its year-earlier level. Investment in manufacturing capabilities and new operations reduced profitability slightly in that business. LG is expanding production capacity for data-centre cooling in Korea and abroad. Its robotics programme includes data infrastructure in Seoul’s Yangjae district and production facilities for robot actuators in Changwon, an industrial city in Korea.[1]
Nine-month earnings pass earlier thresholds
For the first nine months, revenue increased 9.2 per cent to 71.38 trillion won and operating profit rose 55.9 per cent to 4.03 trillion won. LG said this was the first nine-month period to exceed 70 trillion won in revenue and 4 trillion won in operating profit. These preliminary consolidated figures follow Korean International Financial Reporting Standards. Final earnings, including net income and detailed business results, are due later in October.[2], [1]
