LG Electronics profit jumps on strong TV sales

LG Electronics (LG) on Thursday announced consolidated third-quarter 2017 revenues of KRW 15.22 trillion ($13.44 billion), an increase of more than 15% compared with the third quarter the previous year.

All of LG’s four major business units reported higher revenues from the same period a year ago, the group said.

Quarterly operating income of KRW 516.1 billion ($455.7 million) almost doubled from 2017, reflecting strong profitability in home entertainment and appliances despite the gloomy business environment resulting from increasing international trade concerns.

The LG Home Appliance & Air Solution Company accounted for the largest share of quarterly revenue with KRW 4.98 trillion ($4.4 billion), an increase of 16% from the same period last year, buoyed by strong sales in North America, Europe and Asia, particularly in the domestic market.

Operating income of KRW 424.9 billion ($375.16 million) was 26% higher year-over-year. Demand for premium appliances in Europe, Latin America and Asia, especially Korea, is expected to remain strong in the fourth quarter, it said.

The LG Home Entertainment Company reported its highest quarterly operating profit of KRW 458 billion ($404.39 million) and record high operating margin of 9.9% thanks to higher demand for premium TVs in the Americas and Asia.

Sales improved 12% from the same period in 2016 to KRW 4.64 trillion ($4.09 billion).

“LG’s strategy to overcome volume competition by expanding the premium component of its TV business focusing on OLED and Ultra HD TVs is proving to be a success,” the company said. “Sales of OLED units by the end of the third quarter were equivalent to the total number of units sold in 2016 which was more than double the 2015 figure.”

The LG Mobile Communications Company recorded revenues of KRW 2.81 trillion ($2.48 billion), an increase of 8% from a year ago and 4% higher than the previous quarter, primarily from sales of the flagship G6 smartphone as well as mass-tier models such as the Q and K series.

An operating loss of KRW 375.3 billion ($331.37 million) was an improvement of 13% from the 2016 third quarter.

Smartphone shipments of 13.7 million units were 44% higher than the second quarter in the domestic market and 9% higher in North America. “The business unit will focus on driving increased sales of the well-reviewed V30 and improving cost competitiveness in the final quarter of the year,” LG said.


Read: The best mobile brands in South Africa: iPhone vs Samsung vs Huawei

Must Read

Partner Content

Show comments

Trending Now

Follow Us

LG Electronics profit jumps on strong TV sales