LG Electronics Records Highest Ever Q2 Revenue... Operating Profit Slows (2nd Report)

Operating Profit Less Than Half of 1.8 Trillion in Q1

[Asia Economy Reporter Moon Chaeseok] LG Electronics announced on the 7th that it recorded provisional consolidated sales of 19.472 trillion KRW and an operating profit of 791.7 billion KRW for the second quarter.

LG Electronics' second-quarter sales were lower than the record high quarterly performance in the first quarter of this year (21.1114 trillion KRW, 7.1%) but increased compared to the second quarter of last year (17.1139 trillion KRW), which was the highest on a second-quarter basis.

On the other hand, operating profit decreased by 12% compared to the same period last year. It fell sharply by 59.3% from 1.8805 trillion KRW in the previous quarter.

The provisional second-quarter results announced by LG Electronics on this day fell short of the securities firms' estimates of 19.5226 trillion KRW in sales and 839.2 billion KRW in operating profit.

The slowdown in demand for TVs and home appliances, along with cost pressures from rising raw material and logistics expenses, is analyzed to have had a significant impact on the performance. There is also a view that difficulties in targeting the European market, where LG has a high TV market share, due to the Russia-Ukraine war, had a considerable effect.