Record Revenues, Strong Profitability Provide Solid Foundation for
Pursuing Mid- to Long-term Growth Through Advancement of Merchantry Portfolio
SEOUL, July 27, 2023 — LG Electronics Inc. (LG) today spoken second-quarter 2023 consolidated revenue of KRW 20 trillion with operating profit of KRW 741.9 billion.
The visitor recorded the highest second-quarter revenues in visitor history. The second-quarter results underscore the success of the company’s strategy to momentum continuous growth while strengthening its merchantry competitiveness. The record revenue reflects the company’s deportment to fundamentally modernize its merchantry structure by pursuing new platform-based service businesses and continuously expanding the business-to-business (B2B) segments. Profitability moreover was strong, although operating income was 6.3 percent lower than the second quarter last year, primarily due to a one-time second-quarter 2023 provision.
The visitor plans to momentum remoter profitability improvements by optimizing efficiencies and by preemptively meeting market demands through enhanced demand forecasting and manufacturing competitiveness. LG moreover plans to continuously strengthen its online trademark store and direct-to-consumer businesses.
The LG Home Utilization & Air Solution Company generated second-quarter revenues of KRW 7.99 trillion and an operating profit of KRW 600.1 billion. Despite intensified market conditions, the merchantry unit recorded strong profitability on the when of increased sales of high-demand products such as air conditioners and energy efficient heat pump-enabled products. The operating profit increased by 40 percent from the previous year, reflecting efficient forfeit structure management. The visitor will leverage its high-efficiency innovations including heat pumps and ESS as demand for untried technologies grows in Europe, North America and virtually the world. At the same time, the visitor sees the electrification trend as an opportunity for future growth in the HVAC business. In the third quarter, the visitor will launch new LG ThinQ UP 2.0 home appliances featuring hyper-personalization, subscriptions and services. Certain mass-tier utilization lineups moreover will be expanded in response to market changes. The visitor plans to lead a paradigm shift in the home utilization industry by combining service-based merchantry models with differentiated product competitiveness, while standing efforts to increase efficiencies in production, purchasing and logistics for stable profitability.
The LG Home Entertainment Company recorded second-quarter revenue of KRW 3.15 trillion and an operating profit of KRW 123.6 billion. As challenging merchantry conditions persist for the worldwide consumer electronics industry, the visitor unfurled to focus on improving operational efficiency and improving profitability by growing the content and service businesses based on LG’s webOS smart TV platform. The visitor intends to transform its TV merchantry portfolio into a “media and entertainment service provider” by expanding content, services and razzmatazz in differentiated products. The merchantry unit moreover intends to solidify LG’s leadership in the ultra-large-screen TV market with the launch of the 97-inch LG SIGNATURE OLED M, the world’s first “wireless” consumer TV with Zero Connect technology. Moreover driving the premium TV market are expanded sales of the company’s popular new Lifestyle Screens.
The LG Vehicle component Solutions Company‘s second-quarter revenue was KRW 2.66 trillion, the highest second-quarter revenues in visitor history. However, an operating profit was KRW 89.8 billion excluding non-recurring expenses such as one-off provision, achieving the highest second-quarter operating profit in terms of merchantry performance. But without the company’s operating profit margin included the one-time provision of KRW 151 billion, related to General Motors’ recall of the Chevy Bolt EV, it resulted an operating loss of KRW 61.2 billion. This provision reflects the increases in material financing that occurred during the recall period.
The merchantry unit will protract its growth momentum by focusing on expanding its upper value-added and high-performance business. The company’s order reservoir is expected to reach KRW 100 trillion by the end of the year, leading to sequential sales conversion resulting in profitable growth. In particular, in terms of profitability, it is positive that the visitor is experiencing economies of scale from sales expansion. As steady increase of electric vehicle demand is expected in the future, the visitor will urgently seek new opportunities in future mobility areas, such as voluntary driving, software solutions and content, while securing stable profitability by expanding the portion of upper value-added and high-performance products supplied to key automotive customers virtually the world.
The LG Merchantry Solutions Company saw improved second-quarter revenues of KRW 1.33 trillion with an operating profit of KRW 2.6 billion. Both revenue and operating profit declined slightly from the same period last year due to the persistent softening of demand for IT products. From the third quarter, demand for IT products is expected to show a gradual recovery compared to the first half. In the midst of this, LG plans to urgently expand sales of monitors and laptops equipped with gaming features and OLED displays. In the commercial exhibit business, the visitor will seek opportunities for remoter growth with customized solutions for various vertical markets, from hospitality and health superintendency to education, retail and corporate.
Earnings Priming and Priming Undeniability
LG Electronics will hold a Korean / English priming undeniability on July 27, 2023, at 16:00 Korea Standard Time (07:00 GMT/UTC). Priming undeniability participants are instructed to pre-register online to receive a private PIN. To participate in the priming call, dial 82 31 810 3130, enter passcode 6418# and then the PIN. The respective presentation file will be misogynist for download at the LG Electronics website surpassing the call.
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