LG Revenues Grow To $12.89 Billion Despite Mobile Trouble
LG has reported revenue growth almost across the board for the second quarter of 2017, posting a quarterly operating income of $588.2 million.
13.6% higher than the previous year’s result, LG say the strong result was led by the home appliance unit’s increase of 12% in sales over the 2016 second quarter of 2016.
Accounting for the largest share of the second quarter’s revenue and operating income, LG expect to see growing demand in North America, Europe and Asia driven by premium home appliances such as InstaView refrigerators and TWINWash washing machines.
Meanwhile, LG’s Entertainment Company recorded approximately $303.80 million in operating profit on revenues of $3.75 billion, a 2% increase despite the declining worldwide demand for TVs.
According to LG, “Strong second-quarter sales of premium TV products, such as LG OLED TVs and LG SUPER UHD TVs, coupled with improved cost management, resulted in a solid 8.1 percent operating profit margin. Premium TV sales are expected to remain strong for LG in the third quarter.”
The company’s mobile division fared less well, reporting an operating loss of $117.27 million on revenues of $2.39 billion.
Citing “weaker than expected premium smartphone sales and increase in component costs”, LG say “the introduction of the new Q series and the rollout of a new high-end device in the weeks ahead are expected to bolster the company’s performance in the second half of 2017.”
Still, LG Mobile do insist that “the North American market remained strong, contributing a 13% increase in sales compared to the same period last year thanks to strong performance of the company’s mass-tier lineup.”
Finally, LG’s Vehicle Components Branch showcased strong growth of 38%. Sales for the division grew to $781.7 million, “in large part due to the success of its telematics business and components for the recently-launched Chevrolet Bolt electric vehicle in the United States.”
While “ongoing investments in new business areas such as advanced driving assistance systems (ADAS), resulted in an operating loss of KRW 16.4 billion ($14.5 million) for the quarter,” LG insist “those investments are beginning to bear fruit.”