LG Posts Record High Sales, Huge Decline In Profits
LG Electronics has posted the highest quarterly revenue in the company’s history, with consolidated revenue of A$21.5 billion, a 22 per cent leap year-on-year.
However, due to a “one-time charge”, operating profit of A$619.51 billion dropped by 49.6 per cent year-on-year.
The company was hit by massive losses from the recall of GM’s EV Bolt, for which LG Electronics supplied the batteries. It had to shell out roughly A$702.8 million during this expensive recall, impacting the company’s overall operating profits.
The LG Home Appliance & Air Solution business led the company to its record-breaking quarter, with operating profits of A$579.21 million, and a 14.7 per cent rise in sales year-on-year.
LG’s Home Entertainment business achieved third-quarter 2021 sales of $4.79 billion, a jump of 13.9 per cent year-on-year, driven by the large take-up of premium OLED TVs.
Operating profits of A$238.8 million were, however, down year-on-year due to an increase in component prices, such as LCD panels.
Overall, impressive results from the company, and a sign of future prosperity, especially now the battery recall drama is done and paid for.