LG Electronics posts stellar Q3 results thanks to home appliances, vehicle solutions

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LG Electronics posts stellar Q3 results thanks to home appliances, vehicle solutions

Published: 27 Oct. 2023, 18:28

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

LG Electronics CEO William Cho [NEWS1]

LG Electronics’ consensus-beating third quarter performance is largely derived from its spearheading home appliance and vehicle solutions businesses.

The Korean electronics company on Friday announced its third quarter results.

Its operating profit came to 996.7 billion won ($738 million) during the July-September period this year, hovering over market consensus of 898.9 billion won. The figures matched the preliminary result announced earlier.

Operating profit jumped by 33.5 percent more than the previous year.

It logged 20.7 trillion won in revenue, 2.2 percent less than the previous year, but over the market consensus of 20.4 trillion won.

Its Home Appliance and Air Solution (H&A) division reported 504.5 billion won in operating profit which is an increase by more than twofold from the previous year. Its quarterly revenue came to 7.5 trillion won.

“Responding to slow demand, [LG Electronics] expanded the lineup of its products, strategically approaching the market,” the company said.

“We continued to expand the business-to-business portion in areas such as ventilations, components and built-in appliances.”

The company’s vehicle solution business also fared well.

Its third quarter revenue came to 2.5 trillion won with the operating profit logging an all-time high of 134.9 billion won.

“There are concerns of temporary slow demand in the auto components market,” the company said. “But the VS division still expects rapid growth on the back of demand for premium components for EVs.”

LG Magna e-Powertrain, LG Electronics’ joint venture with Canada’s Magna International is expected to complete its plant construction in Ramos Arizpe in Mexico within this year, which will produce EV components.

The Home Entertainment division generated 3.6 trillion won in revenue and 110.7 billion won in operating profit.

Its Business Solution, which includes EV charging business, has reported an operating loss of 20.5 billion won.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]