Published on August 1st, 2019 | by The GC Team0
LG reports record-high sales for home appliance division
LG Electronics has announced record second-quarter revenues with consolidated sales of KRW 15.63 trillion (USD 13.40 billion) and operating profit of KRW 652.3 billion (USD 559.4 million) for the period covering April to June 2019.
Compared to the same period last year, sales were 4.1% higher with operating income down 15.4%. Record home appliance profits and strong business solutions profitability offset smaller operating income for home entertainment products and losses from vehicle components and mobile communications.
The LG Home Appliance & Air Solution Company reported record sales of KRW 6.10 trillion (USD 5.23 billion) in the second quarter. Operating income of KRW 717.5 billion (USD 615.3 million) was the highest ever for the April-June period. The business unit recorded strong profitability on the back of stable growth, increased sales of high-demand products such as air conditioners and continuous cost reduction activities.
The Home Entertainment Company generated second-quarter revenues of KRW 3.67 trillion (USD 3.15 billion), a decrease of 4.5% from the same period last year due to a decline in demand in regions such as Europe and Latin America where major sporting events in the second quarter of 2018 generated strong sales. Operating income of KRW 205.6 billion (USD 176.3 million) declined from the previous quarter due to higher investments in light of greater competition in key markets and exchange rate depreciation.
The Mobile Communications Company recorded second-quarter sales of KRW 1.61 trillion (USD 1.38 billion), 21.3% lower than the same period last year due to stagnant demand in the smartphone market and continued aggressive pricing by Chinese brands. The business posted an operating loss of KRW 313 billion (USD 268.4 million) as a result of higher marketing investment to support the launch of new models and additional costs related to relocating smartphone production to Vietnam.
The Vehicle Component Solutions Company posted quarterly revenues of KRW 1.42 trillion (USD 1.22 billion), an increase of 63% from the second quarter last year, but operating losses amounted to KRW 55.80 billion (USD 47.8 million).
The Business Solutions Company reported second-quarter sales of KRW 675.5 billion (USD 579.29 million), 14.8% higher than the same quarter the previous year, with operating income up 49% year-on-year to KRW 58.1 billion (USD 49.82 million).