LG Electronics Reports Q3 Operating Profit of 959 Billion KRW... Highest Ever for Q3 (Update)

[Asia Economy Reporter Ki-min Lee] LG Electronics announced on the 30th that it achieved consolidated sales of KRW 16.9196 trillion and operating profit of KRW 959 billion in the third quarter of this year.

Sales and operating profit in the third quarter of this year increased by 7.8% and 22.7%, respectively, compared to the same period last year. The sales figure is the second highest quarterly sales ever, following KRW 16.9636 trillion in the fourth quarter of 2017, and the operating profit is the highest ever for the third quarter.

LG Electronics explained that demand suppressed in the first half due to the novel coronavirus disease (COVID-19) exploded in the third quarter, and home appliances and OLED TVs performed well in line with the stay-at-home trend.

In addition, automotive parts and smartphones significantly reduced losses due to the normalization of operations at automakers and expanded sales of mid- to low-priced products, respectively.

By business division, the Home Appliance & Air Solution (H&A) Business Division achieved record quarterly sales of KRW 6.1558 trillion and the highest operating profit for any third quarter of KRW 671.5 billion. As a result, LG Electronics’ H&A Business Division’s cumulative operating profit for the third quarter of this year exceeded KRW 2 trillion for the first time.

The Home Entertainment (HE) Business Division, which operates the TV business, recorded sales of KRW 3.6694 trillion and operating profit of KRW 326.6 billion. The Mobile Communications (MC) Business Division, responsible for the smartphone business, posted sales of KRW 1.5248 trillion and an operating loss of KRW 148.4 billion.

The Vehicle Components (VS) Business Division recorded sales of KRW 1.6554 trillion and an operating loss of KRW 66.2 billion. The Business Solutions (BS) Business Division achieved sales of KRW 1.4828 trillion and operating profit of KRW 77 billion.

LG Electronics stated that in the fourth quarter, as countries maintain low interest rate policies for economic stimulus and additional fiscal policies are expected to continue, and with the spread of the Ontact (non-face-to-face) trend, new business opportunities are expected to be created. The company plans to turn the crisis into an opportunity and strengthen its global brand image.

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