LG Electronics Achieves Record High Q2 Sales and Operating Profit (Update)

Strong Performance in Home Appliances and Automotive Electronics

LG Electronics recorded the highest sales and operating profit ever for the second quarter, driven by strong performance in the home appliance and automotive parts businesses.

LG Electronics announced on the 25th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 1.1962 trillion KRW, a 61.2% increase compared to the same period last year.

Jo Joo-wan, President of LG Electronics.
Photo by Yonhap News

Sales for the same period rose 8.5% year-on-year to 21.6944 trillion KRW. Net profit increased by 222.3% to 629.5 billion KRW. Both sales and operating profit are the highest ever recorded for the second quarter.

By business division, the H&A Business Division, responsible for home appliances, posted second-quarter sales of 8.8429 trillion KRW, up 11% from the same period last year, and operating profit of 694.4 billion KRW, up 16%. The volume zone strategy (targeting the largest consumer demand segment) to respond to market polarization was effective, and new businesses such as subscriptions and online also contributed to strong performance.

The VS Business Division, in charge of the automotive parts business, recorded second-quarter sales of 2.6919 trillion KRW, a 1% increase year-on-year, and operating profit of 81.7 billion KRW, turning to a profit.

Both businesses posted the highest sales ever for any quarter and the highest operating profit for the second quarter.

The HE Business Division, responsible for the TV business, recorded second-quarter sales of 3.6182 trillion KRW and operating profit of 97 billion KRW.

The BS Business Division’s sales increased 9.9% year-on-year to 1.4644 trillion KRW, but due to rising costs of LCD panels and continued investments in growth businesses such as electric vehicle charging and robotics, it posted an operating loss of 5.9 billion KRW.