Struggling consumer electronics Company LG Electronics whose local Managing Director is facing a damaging harassment Fair Work claim in the Federal Court is set to report a whopping 47% fall in second quarter profits.

Both revenues and profits have slumped with local management desperately cutting costs and people according to insiders who have contacted ChannelNews, following our recent revelation about the activities of senior management working for the Company.

It also follows our recent investigations relating to the criminal activity of a former LG Electronics New Zealand manager who made damming claims about instructions he was given by LG Australia and New Zealand Managing Director Dan (Sang Moo) Lim.(seen below). to destroy information following an investigation into price fixing between LG and Harvey, nothing came of the inquiry after the former NZ Country Manager pleaded guilty to a criminal charge during the investigation.

The South Korean consumer-electronics giant said in a preliminary earnings report Monday that its operating profit could come in at A$717.71 million Vs $1.344 billion for the same period in 2024.

Revenue is expected to have fallen 4.4% to A$23.27 billion which misses all of the analysts’ expectations.

LG Electronics is scheduled to release its full quarterly results later this month.

LG claims that the slowdown reflects continued weakness in consumer sentiment across major markets and an increasingly challenging external environment.

LG has not said whether consumers have turned off their products after it was revealed that the Company is raking in millions selling confidential data on users of their products to third parties.

Another issue the Company is facing is that recent U.S. trade policies have led to higher tariff costs and intensified market competition, further impacting LG’s global operation.

Currently the Company is desperately trying to move away from the retail market believing that B2b markers and direct selling to consumers will in the long term be more profitable to the business.

Despite poor appliance sales in the last quarter LG believes B2B sales such as vehicle solutions and heating, ventilation, and air conditioning (HVAC) is where their future lies.

Management claim that in the second half, LG will focus on reinforcing its business fundamentals by prioritizing areas of “qualitative growth.”

This includes expanding high-margin, stable-growth B2B sectors such as vehicle solutions and HVAC, scaling non-hardware businesses including webOS platform services and subscription-based models,(which is their confidential data capture business and enhancing direct-to-consumer (D2C) sales through LGE.COM.

The move to sell direct via their global web site which has recently been upgraded in Australia comes as retailers who currently sell their products come under pressure on multiple fronts.

ChannelNews understands that the local LG operation has allocated significant dollars to Black Friday sales in an effort to bypass retailers eliminating double digit margins.

LG claim that B2B operations offer greater resilience against demand and pricing volatility, making them well-suited for expanding solution-based businesses and establishing entry barriers through strong partnerships.

Subscription models and platform-based services support recurring revenue and higher profitability, while D2C sales contribute to both improved profit structure and enhanced brand value.

The Companies home appliance market is currently facing softening demand due to changes in U.S. trade policy and geopolitical risks in the Middle East the Company claims.

As for TV sales management admit that media and entertainment solutions business was impacted by price reductions aimed at addressing stagnant demand and higher marketing spend.

LG have not said how much old 2024 stock is still in the retail channel.

Despite tough competition from Samsung in the OLED market and Hisense and TCL in the large TV market LG is keen to try and grab back its leadership in the premium OLED TV segment through the launch of new wireless products.

There previous wireless products were big black boxes that had to sit in a room or hidden away. They are also punting on their webOS platform to capture confidential data including information on gamers who log onto an LG TV or monitor.

In the HVAC business, LG will intensify its focus on commercial air conditioning systems and industrial cooling solutions–particularly by integrating AI-powered technologies into next-generation data centre applications, expanding its AI data centre (AIDC) business.

The company also expects to complete the acquisition of European hot water solutions company OSO, supporting its expansion into the rapidly growing European Air-to-Water Heat Pump market through synergy and scale.