LG Electronics Posts KRW 781.9 Billion in Operating Profit in Q3, Up 13.5%; All Divisions in the Black
IT DAILY ·
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LG Electronics said it posted profits across all business divisions in the third quarter, thanks to stable profitability in the home appliance and vehicle component businesses and improved results in the media entertainment segment, including TVs.
Consolidated third-quarter sales came to KRW 23.8241 trillion and operating profit to KRW 781.9 billion, up 8.9% and 13.5%, respectively, from a year earlier.
The VS division, which handles vehicle components, set a third-quarter high with sales of KRW 2.8261 trillion and operating profit of KRW 190.3 billion, while cumulative third-quarter orders for AIDC cooling solutions exceeded KRW 3 trillion.
LG Electronics said on the 28th that it sustained profits across all business divisions in the third quarter, supported by steady profitability in its home appliance and vehicle component businesses and improved results in its media entertainment segment, including TVs. The home appliance and vehicle component businesses maintained stable profitability, while the media entertainment business, including TVs, improved from a year earlier.
Among them, the vehicle component business posted record-high third-quarter sales and operating profit. LG Electronics also said cumulative orders for its AIDC cooling solutions have exceeded KRW 3 trillion.
Subscription business and B2B sales also increased. Third-quarter subscription business revenue rose 8.6% from a year earlier to KRW 760 billion, while third-quarter B2B sales climbed 3.4% to KRW 6.1 trillion.
Reflecting these trends, third-quarter consolidated sales came to KRW 23.8241 trillion, up 8.9% from a year earlier. Consolidated operating profit for the quarter was KRW 781.9 billion, up 13.5% from a year earlier.
On a cumulative basis for the first three quarters, sales rose 9.2% from a year earlier to KRW 71.3778 trillion. Cumulative operating profit for the period increased 55.9% to KRW 4.0347 trillion.
The HS division, which handles home appliances, posted third-quarter sales of KRW 7.0444 trillion and operating profit of KRW 259.2 billion. HS sales topped KRW 7 trillion for the second consecutive quarter. The result was driven by the effectiveness of a two-track strategy targeting both premium and volume-zone products.
The HS division maintained stable profitability by responding with operational efficiency even amid higher logistics and marketing costs. Despite rising expenses, it preserved profitability through product strategy and operational efficiency.
The MS division posted third-quarter sales of KRW 5.0215 trillion and operating profit of KRW 146.7 billion. Its sales and operating profit improved from a year earlier. Sales of premium products such as OLED models and expanded sales in emerging markets drove the improvement.
The VS division, which handles vehicle components, recorded third-quarter sales of KRW 2.8261 trillion and operating profit of KRW 190.3 billion. Sales and operating profit for the VS division were the highest for any third quarter. The result reflected continued revenue recognition from existing order backlogs and sustained growth in the in-vehicle infotainment, or IVI, business, with sales expansion and operational efficiency supporting profitability.
The ES division posted sales of KRW 2.1736 trillion and operating profit of KRW 87.2 billion, helped by stronger sales centered on overseas commercial air conditioning markets. However, costs rose as the company incurred more spending to expand orders for future new businesses, which had some impact on profitability.
Cumulative orders for LG Electronics' AIDC cooling solutions in the third quarter exceeded KRW 3 trillion. That represents a sharp increase from the roughly KRW 600 billion level in orders in the first half. In response, the company will invest an additional KRW 220 billion and has begun expanding production capacity at home and abroad, including securing a manufacturing base in the United States.
At the same time, in its robotics business, it has started partial operations at the country's largest data factory, established mass production infrastructure for actuators, and is carrying out order-securing activities targeting global potential customers. In its AI home business, it is pursuing ecosystem development with global big tech companies based on the latest Internet of Things, or IoT, technologies.
For the fourth quarter as well, LG Electronics will continue to treat B2B, subscriptions and online businesses as strategic growth areas, while pursuing growth and efficiency tasks across each business segment. The HS division sees demand in the Global South as relatively resilient and will focus on expanding sales in that market. The VS division plans to continue sales growth based on its existing order backlog, while emphasizing operational efficiency, including strengthening cost competitiveness.
The ES division made timely response to large AIDC cooling solution projects its top priority. At the company level, it bought back 730,000 treasury shares within the year and plans to cancel all 730,000 treasury shares in the fourth quarter.
Source: IT DAILY · Kim Byung-ju
Original: https://www.itdaily.kr/news/articleView.html?idxno=242510
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Source: IT DAILY
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