LG Q3 Operating Profit Up 45% YoY
LG Electronics has post a notable 45% year-on-year jump in Q3 operating profit to 749 billion won ($657.83 million), meeting the company’s former guidance.
The Korean giant claims Q3 revenue is the highest notched this year, climbing 2.7% from the previous quarter.
Consolidated Q3 sales hit KRW 15.43 trillion (USD 13.76 billion), whilst its struggling mobile business managed to “significantly” narrow losses.
Despite a slowdown in economic activity across Asia, LG’s home appliance and aircon division remained stable, posting Q3 revenues of KRW 4.85 trillion (USD 4.33 billion) and operating profit of KRW 409.7 billion.
Strong divisional profitability was achieved, following a jump in premium appliance sales and continued cost management.
LG’s home entertainment division notched an operating profit of KRW 325.1 billion (USD 289.9 million) on KRW 3.71 trillion (USD 3.31 billion) in sales, despite a “sluggish” overall TV market.
Despite the slowdown, LG claims sales of its premium OLED and UHD TVs remain strong. The company plans to increase its focus on premium TVs for the duration of the year.
By contrast, its mobile communications division has continued to struggle – posting an operating loss of 146.3 billion (USD 130.5 million) – but LG asserts it’s an improvement from previous quarters.
LG’s mobile division notched sales of KRW 2.04 trillion (USD 1.82 billion), amid intense market competition and slowing smartphone demand.
Mobile improvement claims to stem from an enhanced focus on mid-range devices, plus better profitability management. The release of its premium V40 ThinQ is expected to boost Q4 sales.
Shares in LG slipped 3.6% after its Q3 earnings were released.