LG Reports Record Sales But Plummeting Profits
LG Electronics has enjoyed its highest-ever sales during the third quarter of 2021, but a costly recall of General Motors’ Chevrolet Bolt EV in the US means that operating profits have taken a tumble.
LG’s earning guidance for the September quarter shows that raked in an estimated $21.1 billion AUD during the period, and $616 million AUD in estimated operating profits.
The revenue marks a 22 per cent leap from a year earlier, and breaks the quarterly record set in the June quarter of this year.
Operating profits, however, have fallen 49.6 per cent from the previous year, after the company set aside close to 500 million AUD to cover the costs of the Chevrolet Bolt recall, which LG Electronics supplied the battery modules for.
The record sales are believed to be due to premium home appliances and televisions. LG did not provide a business division breakdown of profits.