LG Electronics reports profit surge on strong sales of appliances and home entertainment - TechSource International - Leaders in Technology News

LG Electronics reports profit surge on strong sales of appliances and home entertainment

Home Entertainment achieved record profitability; Home Appliances reported strongest Q3 revenues ever.
Publish date:
Screen Shot 2017-10-29 at 08.03.48

LG Electronics announced consolidated third-quarter 2017 revenues of USD 13.44 billion (KRW 15.22 trillion), an increase of more than 15 percent compared with the third quarter the previous year.

According to a statement, the company’s four major business units reported higher revenues from the same period a year ago. Quarterly operating income of USD 455.7 million (KRW 516.1 billion) almost doubled from 2017, reflecting strong profitability in home entertainment and appliances despite the gloomy business environment resulting from increasing international trade concerns.

LG G6 Astro Black

LG G6 Astro Black

LG Home Entertainment Company also reported its highest quarterly operating profit of USD 404.39 million and record high operating margin of 9.9 percent thanks to higher demand for premium TVs in the Americas and Asia. The world's largest maker of liquid crystal displays (LCDs) also indicated that shipments of screens would grow by "a mid-single digit percent" in the current quarter.

The LG Mobile Communications Company recorded revenues of USD 2.48 billion (9 KRW 2.81 trillion), an increase of 8 percent from a year ago and 4 percent 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. While the company admitted that its mobile division posted an operating loss of USD 331.37 million (KRW 375.3 billion) due to decline in sales of its flagship G6 phones, however the company said in a statement that it was nonetheless an improvement of 13 percent from the 2016 third quarter. 

The South Korean electronics goods maker indicated that the focus would now be on driving increased sales of the well-reviewed V30 and improving cost competitiveness in the final quarter of the year.