[THE INVESTOR] Tech giant LG Electronics said on Oct. 25 that it posted the highest operating profit in the July-September period since 2009 thanks to the solid growth of its home appliance business.
Announcing the Q3 earnings results, the company said it earned 748.8 billion won in operating profit, up 45.1 percent on-year, while logging sales of 15.47 trillion won, up 1.3 percent from a year earlier.
The firm’s home appliance unit was the largest contributor to the profit increase as the division’s operating income stood at 409.7 billion won, or 54.7 percent of the entire operating profit. It posted 4.85 trillion won in sales.
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The TV division’s revenue and operating profit stood at 3.7 trillion won and 325.1 billion won, respectively, while the smartphone division recorded an operating loss of 146.3 billion won.
The vehicle components unit posted an operating loss of 42.9 billion won. LG acquired Austrian automotive headlight maker ZKW in August last year to expand its presence in the car components market.
The digital signage and solar panel business was in the red, recording an operating loss of 35.1 billion won.
In the last quarter of this year, robust demand for premium home appliances, such as clothes dryers, and the Styler clothing system, will push up the company’s profits, and OLED TVs will likely see stable sales growth.
In the ever-heated smartphone market, LG said it would try to improve profits with the newly launched V40 ThinQ, equipped with a total of five camera lenses on the front and back, while preparing to launch new phones that support 5G connectivity.
By Kim Young-won (email@example.com)