LG Electronics' cumulative order value for AIDC (Artificial Intelligence Data Center) cooling solutions has surpassed 3 trillion won. As the company accelerates efforts to expand its supply capacity, including securing production bases in the United States, the business is establishing itself as a future growth driver.
With stable profitability in its core home appliance and automotive electronics businesses, coupled with a recovery in the TV division, LG Electronics' cumulative operating profit for the first three quarters of this year exceeded 4 trillion won for the first time in its history.
LG Electronics reported consolidated revenue of 71.3778 trillion won and an operating profit of 4.0347 trillion won for the first three quarters of this year. Revenue and operating profit increased by 9.2% and 55.9%, respectively, compared to the same period last year. Third-quarter revenue was recorded at 23.8241 trillion won, with an operating profit of 781.9 billion won.
Despite unfavorable business environments such as the Middle East war, core businesses drove growth. Home appliances and automotive electronics maintained profitability, while the Media & Entertainment business, including TVs, significantly improved its performance, contributing to increased profits. Subscription business revenue, encompassing products and services, was 760 billion won, and B2B (Business-to-Business) revenue reached 6.1 trillion won.
The company is also accelerating efforts to secure future growth drivers. Cumulative orders for AIDC cooling solutions increased from approximately 600 billion won in the first half of the year to over 3 trillion won by the end of the third quarter. LG Electronics is expanding its domestic and international production capacity, including securing a production base in the United States through an additional investment of 220 billion won.
The ES (Eco Solution) Business Division, responsible for cooling solutions, recorded revenue of 2.1736 trillion won and an operating profit of 87.2 billion won in the third quarter. Sales increased, centered on the overseas commercial HVAC market.
Profitability was partially affected by increased costs to respond to the expansion of orders for future new businesses. In the fourth quarter, LG Electronics will prioritize timely response to large-scale AIDC cooling solution projects to accelerate growth.
In the robotics field, the country's largest data factory has begun partial operation. While preparing mass production infrastructure for actuators, the company is conducting order acquisition activities targeting global potential customers. AI home solutions are being developed to build an ecosystem based on the latest Internet of Things (IoT) technology in collaboration with global big tech companies.
By business division, the HS Business Division, responsible for home appliances, achieved revenue of 7.044 trillion won and an operating profit of 259.2 billion won. Revenue exceeded 7 trillion won for two consecutive quarters.
Despite short-term increases in logistics costs and marketing expenses, stable profitability was maintained through operational efficiency. For the fourth quarter, as home appliance demand recovery is expected to be limited, the company plans to increase sales centered on the Global South region, where demand remains relatively firm.
The MS Business Division, which handles TVs and other products, recorded revenue of 5.021 trillion won and an operating profit of 146.7 billion won. Both revenue and operating profit improved significantly compared to last year, driven by increased sales of premium products such as OLEDs and efforts to capture emerging markets. The company aims to solidify its profitability foundation by increasing the share of premium products.
The VS Business Division, responsible for automotive electronics, recorded revenue of 2.8261 trillion won and an operating profit of 190.3 billion won, both setting all-time highs for a third quarter. The conversion of existing order volumes into revenue and growth in the in-vehicle infotainment (IVI) business supported performance. Going forward, the division will focus on continuing growth based on secured backlog while enhancing cost competitiveness.
An LG Electronics official stated, "We plan to expand B2B, subscription, and online businesses in the fourth quarter and respond to changes in the external environment through supply chain diversification and operational efficiency." The official added, "The 730,000 shares of treasury stock purchased within this year are scheduled to be fully cancelled by the end of the fourth quarter as planned."
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