Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News

LG Bets on Home Appliance, TV Sales After Strong Q2 Results

Meet the voice behind Indo-Asian News Service (IANS), a storyteller navigating the currents of global events with precision and depth. Crafting narratives that bridge cultures, IANS brings you the pulse of the world in every word

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

LG Electronics on Thursday said it expected a solid third-quarter performance with growth in its auto parts business after delivering strong second-quarter results on the back of its home appliance unit amid the pandemic.

The South Korean tech giant said its operating profit spiked 65.5 percent to 1.11 trillion won ($968 million) in April-June, its best second-quarter performance since 2009.

Sales jumped 48.4 percent on year to 17.1 trillion won over the cited period, its largest ever for any second quarter, reports Yonhap news agency.

The figures were in line with its earnings guidance announced earlier this month that slightly missed the market consensus.

Compared with the first quarter, when the company posted its best-ever quarterly performance, sales were down 3.9 percent, while operating profit declined 37 percent.

The company posted a net loss of 113.6 billion won in the second quarter as a result of its mobile communications (MC) unit being considered discontinued operations. In April, LG announced it would exit from the smartphone business by July after years of losses.

LG said the net loss from discontinued operations of the MC unit was about 1.3 trillion won in the first half of the year, which includes provisions for customer management and service operation costs.

If excluding losses from operating activities in the first half, the net amount reaches 770 billion won. LG, however, declined to reveal the amount of compensation for its suppliers and inventory costs.

LG’s home appliance & air solution (H&A) unit led the second-quarter performance as pent-up demand and robust sales of its premium appliances continued despite rising costs.

It reported 6.81 trillion won in sales, up 32.1 percent from a year ago, and 653.6 billion won in operating profit in the second quarter, up 6.8 percent from a year earlier.

For the third quarter, the company expected its home appliance sales to post year-on-year growth but pointed out that there will be pressure to increase costs as raw material prices and logistics expenses rise.

LG said the unit’s third-quarter operating profit is estimated to be similar to that of last year’s as the company will focus on improving operational efficiencies and product competitiveness in major markets.

LG said its OLED TVs accounted for more than 30 percent of its TV sales in the second quarter. The company expected demand for its premium TVs to grow steadily in the third quarter.


Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic