LG Electronics announced that its revenue for the second quarter of 2022 is estimated to increase by 15% to 19.5 trillion won (about 10.62 billion yuan), while its profit is estimated to decrease by 12% to 791.7 billion won (about 4.085 billion yuan).
Dow Jones News Agency reported on Thursday that LG Electronics’ revenue in the second quarter showed an annual decline mainly due to the impact of weak demand and rising raw material costs. According to FactSet, analysts expect LG Electronics’ 2Q revenue to reach KRW825.9 billion.
LG Electronics said earlier this week that it secured new orders worth 8 trillion won ($6.1 billion) for electric vehicle (EV) parts and solutions in the first half of the year, Yonhap News Agency reported Thursday.
Analysts expect LG’s automotive solutions business, whose customers include Mercedes-Benz and General Motors, to turn a loss into a profit in the second quarter, said Kim Dong-won, an analyst at KB Securities, noting that LG’s EV parts division posted revenue of 40.6 billion won in the second quarter.
Analysts said the company is facing unfavorable factors such as slowing demand for TVs and other household appliances due to the epidemic and higher raw material prices as the war in Ukraine and supply bottlenecks continue. Analysts noted that soaring inflation has also curbed consumer spending on electronics and other IT equipment.
LG will release its full quarterly earnings report later this month.