LG Electronics Q1 Operating Profit 1.4974 Trillion Won... Home Appliance Performance Jumps to Trillion-Won Scale (Update)

LG Electronics achieved results across all business sectors, recording the third-highest operating profit in history for the first quarter. In particular, the Home Appliance & Air Solution (H&A) Business Division surpassed 1 trillion KRW in quarterly operating profit for the first time ever as a single business division.

LG Electronics announced on the 27th that its consolidated sales for the first quarter decreased by 2.6% year-on-year to 20.4159 trillion KRW. Operating profit fell by 22.9% to 1.4974 trillion KRW. Despite the decline in performance due to the global economic downturn, the results exceeded previous market expectations.

Considering that the first quarter of last year included a one-time patent income of about 800 billion KRW in operating profit, LG Electronics explained that profitability has improved. In fact, this quarter’s sales were the second highest ever for a first quarter, and operating profit was the third highest.

LG Electronics stated that company-wide efforts such as the War Room task, which is being carried out to fundamentally improve business structure and operational methods, contributed to these results. From a business structure perspective, the company increased business-to-business (B2B) sales across all business areas, and from an operational perspective, it maximized business efficiency by implementing a differentiated distribution strategy that proactively responds to the market based on precise demand forecasting and manufacturing competitiveness.

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Looking at performance by business division, the H&A Business Division, responsible for home appliances, recorded sales of 8.0217 trillion KRW and operating profit of 1.0188 trillion KRW in the first quarter. Both sales and operating profit were the highest ever for a first quarter. Sales grew evenly across all global regions compared to the previous quarter, and operating profit exceeded 1 trillion KRW for the first time ever as a single business division in a quarter.

The HE Business Division, in charge of the TV business, posted first-quarter sales of 3.3596 trillion KRW and operating profit of 200.3 billion KRW. Sales slightly declined year-on-year due to reduced demand amid prolonged geopolitical issues in Europe. However, profitability improved to a black ink turnaround as the webOS platform-based content and service business continued to grow, strengthening competitiveness.

The VS Business Division, responsible for automotive components, recorded first-quarter sales of 2.3865 trillion KRW and operating profit of 54 billion KRW. Both sales and operating profit were the highest ever for a first quarter. Sales increased significantly as the order backlog, which reached 80 trillion KRW at the end of last year, sequentially translated into expanded sales volume. The economies of scale from sales expansion were reflected in profitability.

The BS Business Division posted first-quarter sales of 1.4796 trillion KRW and operating profit of 65.7 billion KRW. Compared to the same period last year, sales and operating profit declined somewhat due to decreased demand for IT products, but the division showed growth compared to the previous quarter by responding with competitive products such as the ultra-slim LG Gram during the academy season of graduations and admissions.

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