LG Electronics released the latest performance report, and finally verified that the operating profit in the third quarter of this year increased by 25.1% year-on-year to 746.6 billion won (about 3.8 billion yuan). Sales increased by 14.1% year-on-year to 21.1768 trillion won, a new single-quarter high.
The H&A division had sales of 7,473 billion won and an operating profit of 228.3 billion won. Sales for the quarter were the best third-quarter performance in history, increasing 5.8% compared to the same period last year. In the global market, including developed markets such as North America and Europe, growth has been achieved compared with the same period last year.
Sales of the HE business unit were KRW 3,712.1 billion and losses were KRW 55.4 billion. Sales fell 11.2% from a year earlier, hurt by lower global TV demand and a contraction in European consumption due to the Russian-Ukrainian conflict.
The VS division, which is the growth engine of LG Electronics, recorded sales of KRW 2,345.4 billion in sales and KRW 96.1 billion in operating profit, increasing by 45.6% compared to the same period last year.
According to reports, they have exceeded 2 trillion won for two consecutive quarters due to actively responding to the expansion of production by OEMs and effective supply chain management. Operating profit was profitable for two consecutive quarters, driven by sales growth and continued improvement in cost structure across all business segments including infotainment, electric vehicles, and automotive lighting systems.
In addition, the sales and operating losses of the BS division were KRW 1.4292 trillion and KRW 14.4 billion, respectively, although sales increased by 9.7% compared to the same period last year. According to reports, this quarter’s operating profit suffered a loss due to the increase in raw material prices and increased logistics costs.
LG Electronics forecasts that business uncertainty will continue in the fourth quarter of this year due to lower consumer confidence due to inflation and interest rate hikes, as well as longer-term geopolitical risks.
