LGELECTRONICS announced on the 7th that, based on consolidated figures, its preliminary third-quarter results showed revenue of 23.827 trillion won and operating profit of 781.8 billion won. Compared to the same period last year, revenue increased by 8.9% and operating profit by 13.5%.
Despite an unfavorable business environment, including the war in the Middle East, the company maintained its market position in core businesses, while growth in the Global South and business-to-business (B2B) segments drove revenue expansion. In terms of profitability, the home appliance and automotive components businesses continued to serve as cash cows in the business-to-consumer (B2C) and business-to-business (B2B) sectors, respectively. The TV business also improved its profitability compared to the same period last year.
Company-wide improvements in the cost structure and the operating leverage effect resulting from increased revenue also contributed to the improved performance. The company explained that these measures offset cost pressures such as logistics expenses, material costs, and fixed costs.
By business segment, the Home Appliances (HS) division continued to grow through a two-track strategy targeting both the premium and volume segments, as well as the expansion of appliance subscription services, online sales, and B2B operations. The Media & Entertainment (MS) division saw increased revenue driven by expanded sales of premium TVs, such as OLED models, and growth in Shinhung markets. The webOS platform business also maintained its growth momentum.
The Vehicle Components (VS) division maintained stable growth based on the conversion of existing order backlog into revenue and an increased share of premium products in automotive infotainment. The Heating, Ventilation, and Air Conditioning (ES) division maintained revenue at the same level as the same period last year, driven by expanded overseas sales; however, profitability declined slightly due to the impact of investments, such as securing new production capacity and hiring additional staff.
LGELECTRONICS’ cumulative revenue for the first three quarters of this year totaled 71.3807 trillion won, and operating profit reached 4.0346 trillion won, representing year-over-year increases of 9.2% and 55.9%, respectively. This is the first time the company has surpassed 70 trillion won in cumulative revenue and 4 trillion won in operating profit for the first three quarters of a year.
LGELECTRONICS plans to announce its third-quarter net income and detailed business performance by division at an earnings briefing on the 28th of this month.
