LG Electronics

LG Electronics, South Korea’s tech giant, posted the second-biggest operating profit in the first quarter on the brisk sale of premium TVs and home appliances, the company said Wednesday.

Consolidated operating profit jumped 21.1 percent from a year earlier to 1.09 trillion won (894.2 million U.S. dollars) in the January-March quarter, topping 1 trillion won (820 million U.S. dollars) for the second time in the company’s history.

Revenue fell 1.3 percent to 14.73 trillion won (12.1 billion U.S. dollars) in the March quarter, but net income logged a profit of 1.09 trillion won (894.2 million U.S. dollars) from a net loss of 849.8 billion won (697.1 million U.S. dollars) in the previous quarter.

The operating margin reached 7.4 percent in the quarter, marking the highest first-quarter figure for the company.

The home appliance & air solution unit, which makes home appliances and air conditioners, recorded an operating profit of 753.5 billion won (618.1 million U.S. dollars) on revenue of 5.42 trillion won (4.4 billion U.S. dollars).

The revenue slipped 0.9 percent form a year earlier as the COVID-19 outbreak weakened overseas demand, offset by higher domestic sales of steam appliances such as washers, dryers, dishwashers and the clothing care system. It reflected consumer interest in health and hygiene.

The operating profit gained 3.6 percent compared with the same quarter of last year on higher demand for premium products and cost-reduction efforts. The operating margin of 13.9 percent was the highest in LG’s history.

The home entertainment business, which produces TVs, registered an operating income of 325.8 billion won (267.3 million U.S. dollars) on revenue of 2.97 trillion won (2.4 billion U.S. dollars).

The revenue declined 4.8 percent from a year ago on the back of component supply disruptions and slowing global demand, but the operating profit jumped 31.7 percent on robust demand for premium products such as OLED TVs and NanoCell Tvs.

The mobile communications division, which manufacturers smartphones, posted an operating loss of 237.8 billion won (195.1 million U.S. dollars) on revenue of 998.6 billion won (819.2 million U.S. dollars).

The revenue tumbled 33.9 percent compared with last year’s first quarter owing to component supply disruptions and increased marketing costs to buffer the effect from the coronavirus pandemic.

The vehicle component solutions unit, which makes auto parts, recorded an operating loss of 96.8 billion won (79.4 million U.S. dollars) on revenue of 1.32 trillion won (1.1 billion U.S. dollars).

It was attributed to the business disruption of North American and European automakers.

The business solutions division logged an operating profit of 212.2 billion won (174 million U.S. dollars) on revenue of 1.71 trillion won (1.4 billion U.S. dollars).

The revenue gained 3.5 percent from a year earlier thanks to increased sales of solar modules and laptops, and the operating profit jumped 26.3 percent on stable profitability from information displays and an expanded solar module sale. Enditem

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