Driven by solid growth in core businesses such as home appliances and automotive components, LG Electronics posted year-on-year increases in both revenue and operating profit for the third quarter. Cumulative operating profit through the first three quarters of this year surpassed 4 trillion won for the first time.
On the 7th, LG Electronics announced preliminary earnings for the third quarter of this year, reporting consolidated revenue of 23.827 trillion won and an operating profit of 781.8 billion won. Compared to the same period last year, revenue and operating profit increased by 8.9% and 13.5%, respectively.
The home appliance and automotive component businesses maintained solid profitability in the B2C (business-to-consumer) and B2B (business-to-business) sectors, respectively. The TV business also saw a significant improvement in profitability compared to last year. However, operating profit fell well short of the 1st trillion won level expected by securities firms. Affected by the sluggish performance of consolidated subsidiary LG Innotek and one-time costs such as voluntary early retirement programs, Q3 operating profit came in below market forecasts.
Since the beginning of this year, LG Electronics has continued to post year-on-year growth in both revenue and operating profit each quarter. Cumulative revenue through the third quarter stands at 71.3807 trillion won, with cumulative operating profit at 4.0346 trillion won. This is the first time that cumulative revenue has exceeded 70 trillion won and cumulative operating profit has surpassed 4 trillion won on a year-to-date basis. Cumulative operating profit rose by 55.9% compared to the same period last year.
LG Electronics is channeling its robust profitability from core businesses into investments in future new ventures. To meet surging demand for AI (artificial intelligence) data center cooling solutions, the company is upgrading production bases and expanding production capacity both domestically and internationally. In robotics, a representative field of physical AI, LG Electronics is building the largest data factory in the country in Yangjae, Seoul, and proceeding with infrastructure investment for actuators, a core robot component, in Changwon, Gyeongnam Province.
In the Home Appliance Solution business, revenue growth continued as the company pursued a two-track strategy targeting both premium and volume segments, alongside expanding home appliance subscription services, online channels, and B2B operations. The company also maintained a solid profit structure by continuing efforts to enhance operational efficiency in manufacturing and logistics.
In the Media Entertainment Solution business, which handles TVs, revenue increased compared to last year, driven by rising sales of premium products such as OLEDs and expanded sales centered on emerging markets. Growth continued in the webOS platform business as well. The company maintained a profitable trend through an increased share of premium product sales and efficient management of competitive costs such as marketing.
The Vehicle Solution business, which has established itself as a stable cash cow (source of cash generation) in the B2B sector due to an expanded share of premium product sales in the automotive infotainment field, demonstrated steady growth based on the smooth conversion of its order backlog into revenue. In the Eco Solution business, which covers heating, ventilation, and air conditioning, revenue remained at a level similar to the same period last year as sales increased, primarily in overseas markets. Profitability declined slightly due to factors such as investments in future businesses, including securing new production capacity, and hiring personnel for new ventures.
An LG Electronics official stated, "Despite unfavorable environments such as the Middle East war, our core businesses have maintained a solid market position, and revenue growth has continued based on the inherent differentiated competitiveness of our products." The official added, "Growth in the Global South region, which holds significant potential, and growth in B2B businesses also continued."
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