LG Electronics' operating profit in the third quarter increased by 25.1% compared with the same period last year, with sales exceeding 21 trillion won, a new record in a single quarter.
CTOnews.com, October 28, LG Electronics released its latest performance report on October 28, finally verifying that operating profit in the third quarter of this year increased by 25.1% year-on-year to 746.6 billion won (about 3.8 billion yuan). Sales rose 14.1% year-on-year to 21.1768 trillion won, a new record for a single quarter.
CTOnews.com learned that the sales of Hattora's division was 7.473 trillion won and its operating profit was 228.3 billion won. Sales in the quarter were the best third-quarter performance in history, up 5.8% from the same period last year. Growth has been achieved in the global market, including North America, Europe and other developed countries, compared with the same period last year.
The HE Division had sales of 3.7121 trillion won and a loss of 55.4 billion won. Sales fell 11.2% from the same period last year, affected by falling global demand for televisions and shrinking consumption in Europe as a result of the conflict between Russia and Ukraine.
With sales of 2.3454 trillion won and operating profit of 96.1 billion won, the VS division, the engine of LG electronic growth, recorded quarterly record sales, up 45.6 per cent from the same period last year.
According to reports, due to actively responding to vehicle companies to expand production and effective supply chain management, they exceeded 2 trillion won for two consecutive quarters. Operating profit has been profitable for two consecutive quarters due to sales growth and continuous improvement in cost structure in all business areas, such as infotainment, electric vehicles, automotive lighting systems, etc.
In addition, sales and operating losses of the BS division were 1.4292 trillion won and 14.4 billion won, respectively, although sales increased by 9.7% compared with the same period last year. According to reports, the operating profit of this quarter has been lost due to the increase in the price of raw materials and the increase of logistics fees.
LG Electronics forecasts that business uncertainty will persist in the fourth quarter of this year due to falling consumer confidence due to inflation and interest rate increases, as well as long-term geopolitical risks.
