LG Electronics (LG) announces that the company’s consolidated sales in the third quarter of this year were 21.2 trillion South Korean won (15 billion euros at the European Central Bank’s quarterly average exchange rate), or 14 , 1% higher than the same period last year and the highest quarterly sales in the history of the company. Operating profit in the third quarter was 746.6 billion won (526.6 million euros), up 25.1% compared to the same quarter a year ago.
The company’s increased sales volume in the third quarter was facilitated by increased sales of premium home appliances, including in the new equipment categories and automotive spare parts segment. But operating profit fell due to weak demand and current spending caused by the slowdown in the global economy.
LG Home Appliance & Air Solution Company reported sales of 7.5 trillion won (5.3 billion euros) in the third quarter, up 5.8% from a year ago and the highest third quarter sales in the history of unity. Operating profit of 228.3 billion won (161 million euros) was lower than last year as marketing investments and logistics expenses increased. The increase in sales volume was supported by performance results in the premium equipment segment in North America and Europe, as well as in new categories, including the steam technology segment. The unit expects to maintain this growth by improving the competitiveness of premium products and strengthening the range of consumer products, as well as managing the cost structure to drive profitability.
LG Home Entertainment Company reported third quarter revenue of 3.7 trillion won (2.6 billion euros), but the unit reported an operating loss of 55.4 billion won (39.1 million euros). ) thanks to greater marketing investments in a context of fiercer market competition. LG Home Entertainment’s strategy will focus on effectively managing marketing spend and expanding the premium TV segment while managing inventory effectively.
LG Vehicle Components Solutions Company recorded revenue of 2.3 trillion won (1.62 billion euros) in the third quarter, up 45.6% year on year, making it the highest quarterly revenue ever recorded for the unit. The operating profit for the third quarter was 96.1 billion won (67.8 million euros). The increase in sales was driven by a positive response to the increase in demand from car manufacturers through effective management of supply networks. The company will continue to build strong relationships with global automakers and work to increase profitability through effective cost structure management.
LG Business Solutions Company’s third quarter sales reached 1.4 trillion won (987.5 million euros), but the operating losses amounted to 14.4 billion won (10.2 million euros), due to the increase in raw materials and global logistics costs. Trading volume increased 9.7% yoy, mainly due to the recovery of the B2B segment. The company plans to focus intensively on the B2B segment, developing more customized solutions and expanding its product portfolio for stable growth, as well as stabilizing the supply of important components, actively reducing expenses and managing resources more efficiently.
LG Electronics
