LG Electronics reports profit up by a third in Q3
Buoyant sales of new-platform services and automotive electronics helped LG Electronics to beat market expectations in its latest financial results.
The South Korean company said in a regulatory filing that operating income for 3Q hit USD 738.2 million. That's up 33.5% year on year, and 24.9% above the average market projection. Sales hit USD 15 billion, edging down 2.2% over the same period.
LG Electronics said its automotive electronics and air solutions businesses performed best. Together they accounted for more than 30 percent of its sales.
There was also a good performance but by the new-platform business, which monetises appliance sales with recurring after-purchase personalisation and subscription sales.
LG Electronics said the positive results reflected its progress towards what it calls the future vision for 2030. The aim is to focus on "B2B expansion, non-hardware business model innovation and new growth engines to become a Smart Life Solutions company". The divisional results were as follows:
- Home Appliance & Air Solutions generated third-quarter revenue of KRW 7.46 trillion and an operating profit of KRW 504.5 billion.
- LG Vehicle component Solutions posted third-quarter revenue of KRW 2.5 trillion and operating profit KRW 134.9 billion
- Home Entertainment recorded third-quarter revenue of KRW 3.57 trillion and an operating profit of KRW 110.7 billion.
- Business Solutions Company posted third-quarter revenue of KRW 1.33 trillion with an operating loss of KRW 20.5 billion.