Published on October 26th, 2017 | by The GC Team0
LG records strong Q3 results
LG Electronics today announced consolidated third-quarter 2017 revenues of KRW 15.22 trillion (USD 13.44 billion), an increase of more than 15% compared with the third quarter last year.
All of the company’s four major business units reported higher year-on-year revenues.
Quarterly operating income of KRW 516.1 billion (USD 455.7 million) was almost double that of Q3 2016, reflecting strong profitability in home entertainment and appliances, despite what the company described as the “gloomy business environment” resulting from increasing international trade concerns.
Consolidated net profit rose to KRW 336.1 billion, compared to a loss of KRW 81.5 billion in the same quarter last year.
In its outlook for the fourth quarter, LG said it faced a continued business risk due to trade conflict from increasing US trade protectionism and the risk of strong price competition entering the year-end peak season.
LG Home Appliance & Air Solution Company once again accounted for the largest share of quarterly revenue, with KRW 4.98 trillion, an increase of 16% from the same period last year. Operating income of KRW 424.9 billion was 26% higher.
LG Home Entertainment Company reported its highest quarterly operating profit of KRW 458 billion and a record high operating margin of 9.9% due to higher demand for premium TVs in the Americas and Asia. Sales improved 12% to KRW 4.64 trillion. LG said its strategy to overcome volume competition by expanding the premium component of its TV business focusing on OLED and Ultra HD TVs is proving to be a success. Sales of OLED units by the end of the third quarter were equivalent to the total number of units sold in 2016, which was more than double the 2015 figure.
LG Mobile Communications Company recorded revenues of KRW 2.81 trillion, an increase of 8% from a year ago and 4% higher than the previous quarter, primarily from sales of the flagship G6 smartphone as well as mass-tier models such as the Q and K series. An operating loss of KRW 375.3 billion was an improvement of 13% on Q3 2016.
LG Vehicle Components Company achieved strong sales of KRW 873.4 billion, up 29% from the third-quarter of 2016. The company said the division’s operating loss of KRW 29 billion in the quarter reflected continued investments in R&D and business development.