LG Electronics Reports Q3 Operating Profit of 960 Billion KRW... Record High Performance (Update)

[Asia Economy Reporter Dongwoo Lee] LG Electronics has achieved a 'surprise performance,' recording the highest-ever third-quarter results despite the adverse effects of the novel coronavirus disease (COVID-19).

LG Electronics announced on the 8th that it posted provisional results for the third quarter of this year with sales of 16.9196 trillion KRW and an operating profit of 959 billion KRW. Compared to the same period last year, sales increased by 7.8% and operating profit by 22.7%.

LG Electronics' performance slightly exceeded the consensus estimated by the financial investment industry, with both sales and operating profit marking the highest levels ever for the third quarter.

The third-quarter results were driven by the Home Appliance & Air Solution (H&A) division and the Home Entertainment (HE) division. As the COVID-19 pandemic prolonged, the time spent at home increased, leading to a surge in sales of premium and hygiene appliances. The securities industry analyzes that the Home Appliance division and the Home Entertainment division each achieved operating profits of around 600 billion KRW and 300 billion KRW, respectively.

The Mobile Communications (MC) division, responsible for smartphones, also appears to have reduced its losses in the third quarter. With the launch of the new Velvet model in the third quarter and strong sales of mid- to low-priced products in the U.S. and other markets, as well as some indirect benefits from Huawei sanctions in Latin America, performance improved. Previously, the MC division recorded operating losses of about 230 billion KRW in the first quarter and 200 billion KRW in the second quarter.

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