LG Electronics, Q1 Surprise Earnings Return to 1 Trillion Won Operating Profit (Update)

LG Electronics Q1 Consolidated Revenue KRW 14.7287 Trillion, Operating Profit KRW 1.0904 Trillion
Revenue Down 1.2%, Operating Profit Up 21.1% Year-on-Year

[Asia Economy Reporter Changhwan Lee] LG Electronics announced a surprise earnings report for the first quarter. Despite the economic downturn caused by the novel coronavirus disease (COVID-19), sales of home appliances are estimated to have increased significantly.

On the 7th, LG Electronics reported consolidated sales of 14.7287 trillion KRW and an operating profit of 1.0904 trillion KRW. Compared to the same period last year, sales decreased by 1.2%, while operating profit increased by 21.1%.

This is a surprise earnings result that far exceeded the average operating profit forecast (consensus) of 870 billion KRW presented by securities firms over the past month. It is the first time since the first quarter of 2018 that LG Electronics' operating profit has exceeded 1 trillion KRW.

It is evaluated that home appliances with sterilization functions such as stylers, air purifiers, air conditioners, and dishwashers performed better than expected due to COVID-19.

In particular, sales of stylers surged by more than 30% in February compared to the same period last year. Sales of air purifiers and dishwashers are also known to have increased significantly compared to the previous year.

This content was produced with the assistance of AI translation services.