April 20, 2024

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[THE INVESTOR] LG Electronics saw its operating income soar nearly 140 percent on-year to 584.6 billion won (US$519.7 million) in the April-June period on the back of strong sales of home appliances and air-conditioning systems, the company said in its earnings report on July 28.

The company’s revenue came in at 14 trillion won, up 0.6 percent from a year earlier.

 

LG Electronics’ R&D center in Seocho, Seoul  /  LG Electronics

LG’s home appliance & air solution unit and home entertainment unit -- two of the tech giant’s four core business pillars -- posted a record high operating profit of 433.7 billion won and 356.7 billion won, respectively, in the second quarter.

The operating income figures increased 4.8 percent and 5.7 percent, respectively.

The HAA unit posted 4.7 trillion won in revenue, up 4.8 percent on-year while the HE unit logged 4.16 trillion won in revenue, up 5.7 percent compared to a year earlier.

The company attributed the improved operating profit of the two businesses to increased sales of its high-end products including the LG Signature collection, and the TwinWah washer.

LG’s mobile division, however, suffered an operating loss of 153.5 billion won due to increased marketing costs and a sales slump for its latest flagship G5 smartphone. Its revenue came in at 3.26 trillion won, down 6.2 year-over-year.

Overall smartphone shipments increased 3 percent from the previous quarter with a total of 13.9 million smartphones shipped in the second quarter.

“The launch of the new V series and expanding sales of the K and X series models are expected to improve the mobile business unit’s performance next quarter,” the company said.

Although the tech firm’s vehicle component business achieved a 42-percent sales hike to US$639.6 billion, compared to the same period last year, it posted an operating loss of 16.8 billion won in the second quarter.

The firm offered a positive outlook on the vehicle components segment in the third quarter when General Motors’ electric vehicle, Chevrolet Bolt, equipped with LG’s components will be launched in the quarter.

By Kim Young-won (wone0102@heraldcorp.com)