LG Electronics yesterday released its results report, preliminary verification of the company’s second-quarter sales of 19.9988 trillion won, an increase of 2.7%; operating profit of 892.7 billion won, an increase of 12.7%; sales and operating profit Sales and operating profit were the highest and second highest in the history of the same period, respectively.
The company’s revenue in Q2 reached a record high of 20 trillion won, and operating profit jumped 12.7% year-on-year.
LG Electronics’ first-half sales exceeded 40 trillion won for the second consecutive year and operating profit exceeded 2 trillion won for the third consecutive year, ranking the second and third highest in the history of the same period, but the second quarter operating profit was slightly lower than the market expectation.
In this regard, LG Electronics said that the actual operating profit was higher than the market expectation because the cost of the quarter included a one-time charge for voluntary retirement of employees. According to an analysis by Yonhap News Agency, LG Electronics’ strategy of adjusting its inventory in advance, mainly selling high-end products and improving costs in areas such as home appliances and display panels worked, and the proportion of business-to-business transactions (B2B) such as auto parts increased, driving the results beyond expectations.
It was previously reported that in contrast to LG, another South Korean giant Samsung Electronics’ second-quarter operating profit plunged 95.7% to 600 billion won, though it was still higher than the 96% drop previously expected by the market.
