LG Corp. Reports 28% Drop in Operating Profit for H1... Impacted by Weakness in Display and Petrochemical Sectors (Update)

LG Corp. announced on the 10th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 454.7 billion KRW, a 9% decrease compared to the same period last year.

The cumulative operating profit for the first half of the year was 959.6 billion KRW, down 28% from the first half of last year. This was largely due to a decrease in equity-method gains and losses caused by sluggish performance in the display and petrochemical business sectors.

Second-quarter sales increased by 9% year-on-year to 1.8994 trillion KRW. For the first half of the year, sales recorded a 1% increase to 3.55 trillion KRW.

The operating profit margin for the first half was 27.0%, down 10 percentage points from 37.7% in the first half of last year. The operating profit margin of the electronics division dropped significantly to 0.6% from 4.4% in the first half of last year. This was influenced by LG Electronics’ provision for reserves, decreased profits at LG Innotek, and an expanded operating loss at LG Display.

The operating profit margin of the chemical division also fell to 5.3%, about half of last year’s 8.4% in the first half. This was affected by price declines due to intensified competition in the petrochemical business and provisions for LG Energy Solution. On the other hand, only the telecommunications and service division saw a slight increase in operating profit margin to 7.5%, up from 7.3% a year ago.

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