LG Electronics Q2 Operating Profit 495.4 Billion Won 'Strong Performance Despite COVID-19' (Update)

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee] LG Electronics achieved results in the second quarter that exceeded market expectations despite the spread of the novel coronavirus disease (COVID-19).

LG Electronics announced on the 30th that it recorded sales of 12.8338 trillion KRW and operating profit of 495.4 billion KRW in the second quarter. Compared to the previous year, sales decreased by 17.9% and operating profit decreased by 24.1%.

Although performance declined compared to the previous year due to the impact of COVID-19, it significantly exceeded the securities firms' consensus, which had expected operating profit in the low 400 billion KRW range.

By business division, the H&A division, responsible for home appliances, recorded sales of 5.16 trillion KRW, down 15.5% from 6.1 trillion KRW in the same period last year. Operating profit during the same period decreased by about 12%, from 717.5 billion KRW to 628 billion KRW.

The HE division, responsible for TVs, recorded sales of 2.2567 trillion KRW, down 24.4% year-on-year, and operating profit of 112.8 billion KRW, down 26% year-on-year.

The MC division, responsible for mobile, recorded sales of 1.3087 trillion KRW, down 18.9% year-on-year, and an operating loss of 206.5 billion KRW, continuing its deficit.

Looking at the first half of the year as a whole, sales decreased by 9.8% compared to the same period last year, but operating profit increased by 2.1%. The company explained that despite difficult conditions, operating profit in the first half exceeded 1.5 trillion KRW for the fourth consecutive year.

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