LG Electronics Q3 Operating Profit Falls Below 1 Trillion Won... Highest Q3 Sales on Record (Update)

Provisional Results Announcement on the 8th

LG Electronics recorded sluggish performance in the third quarter of this year due to delayed demand recovery and rising raw material costs.

LG Electronics announced on the 8th that it posted consolidated sales of KRW 22.1769 trillion and operating profit of KRW 751.1 billion in the third quarter of this year. Compared to the same period last year, sales increased by 10.7%, while operating profit decreased by 20.9%.

Photo by Yonhap News

The operating profit declined compared to the same period last year due to the impact of sharply rising logistics costs and increased marketing expenses in the second half. In a conference call held after the second quarter earnings announcement, LG Electronics stated, "As a result of the sea freight bidding in the second half, the average sea freight per container is expected to rise by about 58% compared to the same period last year, and marketing competition costs such as advertising expenses are expected to increase."

However, sales recorded the highest level in the third quarter. LG Electronics has achieved year-on-year sales growth for four consecutive quarters since the fourth quarter of last year.

An LG Electronics official explained, "Although challenging external conditions such as delayed demand recovery, rising raw material costs, and fluctuations in sea freight continue, it is meaningful that LG Electronics is steadily increasing its overall sales scale," adding, "Efforts to enhance the portfolio, such as changes in business methods and models and acceleration of business-to-business (B2B) operations, are leading to fundamental competitiveness improvement in the business and maintaining growth momentum."

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