"Battlefield Effect"... LG Electronics Achieves Highest Ever Q2 Performance

Sales Revenue of 19.9988 Trillion KRW, Operating Profit of 892.7 Billion KRW

LG Electronics recorded its highest-ever sales for the second quarter, driven by strong performance in its automotive components business. Operating profit was the second highest on record for a second quarter.

On the 7th, LG Electronics announced its preliminary results for the second quarter of this year, reporting consolidated sales of KRW 19.9988 trillion and operating profit of KRW 892.7 billion.

LG Twin Towers.
Photo by Yonhap News

From a business structural perspective, sales reached a record high for the second quarter by expanding the proportion of business-to-business (B2B) transactions, including the automotive components sector. The company emphasized that this achievement is significant despite delayed demand recovery due to the global economic slowdown and intensified market competition.

Operating profit also increased by 12.7% compared to the same period last year, driven by accelerated qualitative growth of the business. This is seen as a visible result of efforts to fundamentally improve the business structure, such as the company-wide War Room task force. An LG Electronics official explained, "Considering that the preliminary second-quarter results include non-recurring costs related to positive personnel restructuring (such as voluntary retirement), the operating profit based on business performance exceeds market expectations."

Looking at the first half results by combining sales and operating profit from the previous quarter, sales ranked second highest and operating profit third highest in the company’s history for the first half of the year. LG Electronics’ sales for the first half of this year exceeded KRW 40 trillion for the second consecutive year, and operating profit surpassed KRW 2 trillion for the third consecutive year.

In home appliances, sales of high-efficiency products such as dehumidifiers and air conditioners increased due to ongoing heatwaves and monsoon forecasts this year. Sales volume of dehumidifiers in the first half of this year more than doubled compared to the same period last year. For residential air conditioners, responding to diversified customer demand with competitive products in various forms?including stand, wall-mounted, window, and portable types?proved effective. Sales of window-type air conditioners increased by more than 40% compared to the same period last year.

Growth continued in the B2B air conditioning business with competitive products. System air conditioners recorded double-digit sales growth compared to the same period last year. As energy regulations tighten mainly in advanced markets such as Europe, demand for high-efficiency and eco-friendly products like heat pumps is also rapidly increasing.

Despite continued global demand sluggishness in the TV business, the webOS content and service business achieved meaningful growth. New lifestyle screen products such as the LG StanbyMe Go were also newly launched and received positive responses.

The automotive components business maintained rapid growth through a high order backlog and stable supply chain management. A stable business portfolio centered on three pillars?infortainment, electric vehicle drive components, and lamps?is also an advantage. The business solutions division is accelerating the expansion of customer experiences into various spaces, recently introducing the industry’s first hotel TV equipped with Apple AirPlay.

Meanwhile, the preliminary second-quarter results announced this time are estimates based on Korean International Financial Reporting Standards (K-IFRS). LG Electronics plans to announce consolidated net profit for the second quarter and performance by each business division at an earnings conference scheduled for the end of this month.

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