[Concall] LG Electronics "Automotive Business Faces Limited Sales and Profitability Improvement Due to Semiconductor Supply Shortage"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] LG Electronics stated at the earnings conference call held on the 27th that "The delay in the VS (Vehicle Component Solutions) division's turnaround to profitability compared to initial expectations is due to a decrease in finished vehicle production caused by a shortage of automotive semiconductors, increased semiconductor-related procurement costs, and higher operating expenses due to supply instability," adding, "We expect the slowdown in finished vehicle production to gradually ease, but we believe there is uncertainty at the level of specific components."

They continued, "Although sales growth from new project launches and sustained fundamentals continue, the ongoing semiconductor supply shortage and rising material costs are expected to increase cost risks, limiting sales expansion and profitability improvement," and added, "We will strive to achieve a quarterly turnaround to profitability as soon as possible."