November 24, 2024

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LG Electronics headquarter building in Yeouido, Seoul. (LG Electronics)

LG Electronics said Thursday it achieved its all-time high quarterly earnings in the April-June period this year, largely buoyed by the solid growth of its home appliance and vehicle component businesses.

Sales increased 8.5 percent on-year to 21.7 trillion won ($15.7 billion) in the second quarter of this year, while operating profits soared 61.2 percent to 1.2 trillion won during the same period.

The company attributed the upbeat earnings to the "balanced" management of its core business represented by home appliances and the future business, including its vehicle component solution.

The combined sales of the company's home appliances and air solution business and the vehicle component solution business increased 8.2 percent on-year to 11.53 trillion won. Operating profit in total landed at 776.1 billion won, up 45 percent on-year.

"This growth demonstrates not only external expansion but also solid profitability, contributing to qualitative improvements in overall performance," LG said.

According to the company, its home appliance and air solution business achieved sales of 8.8 trillion won and operating profit of 694.4 billion won, up 11 percent and 16 percent on-year, respectively.

Its vehicle component business made a turnaround in the second quarter with an operating profit of 81.7 billion won, marking the highest quarterly figure. The sales posted 2.6 trillion won.

With a diverse client group of electric and internal combustion vehicles, the company was able to maintain growth of its vehicle component business, reducing the impacts of the temporary slowdown in EV demand, the company said.

LG's TV business saw 3.62 trillion won in sales and an operating profit of 97 billion won. Sales grew on the back of demand recovery in Europe, the key market for LG's premium OLED TVs. Operating profit declined due to increased costs, including rising LCD panel prices, the company said.

"In the third quarter, market growth for premium products such as commercial displays and gaming monitors is expected to continue," the company said.

"The company will focus on expanding sales of strategic products and improving profitability through efficient resource management."

LG said it is accelerating effort to combine traditional hardware sales with none hardware offerings of content and subscription services. For its webOS content and service business expanding beyond TVs to be adopted in IT and infotainment, the company predicted the sales to surpass 1 trillion won this year.

The company also seeks to expand its smart factory business, and expects to secure orders worth 300 billion won this year.

By Jo He-rim (herim@heraldcorp.com)