LG Electronics Inc. (LG) reported its highest-ever second-quarter revenue, owing to strong sales of LG home appliances in key regions and profitable growth of LG’s vehicle components business as the global automotive industry recovers.
LG reported KRW 19.5 trillion in revenue in the second quarter of 2022, a 15% increase over the same quarter the previous year. The operating profit for the second quarter was KRW 792.2 billion, a 12% decrease from the same quarter last year, owing primarily to supply chain challenges and higher logistics costs.
Given the business impact of the evolving pandemic and economic conditions, LG is leveraging its diverse business portfolio, expanding sales from premium to mass-tier products and expanding business-to-business areas such as auto parts.
The LG Home Appliance & Air Solution Company reported second-quarter revenues of KRW 8.07 trillion, the first time in LG history that a single business unit exceeded quarterly revenues of KRW 8 trillion. KRW 432.2 billion was earned in operating profit. Revenues increased 18% year on year, primarily due to higher sales of premium appliances and new categories such as hygiene products using steam technology in key regions such as North America and Latin America. The business unit intends to maintain its momentum by improving the competitiveness of its premium products and fortifying its mass-tier lineup.
The LG Home Entertainment Company reported revenues of KRW 3.46 trillion in the second quarter, with an operating loss of KRW 18.9 billion due to increased marketing investments in response to heightened market conditions. LG’s Home Entertainment strategy will focus on effectively managing marketing expenses and growing the premium TV segment, particularly during peak selling seasons such as the FIFA World Cup and holidays.
The LG Vehicle Component Solutions Company reported second-quarter sales of KRW 2.03 trillion, a 19% increase over the same period in 2021, propelling the business unit to profitability for the first time. LG’s significantly higher sales were driven by proactive supply chain management in response to increased demand from automakers. With the uncertainty created by inflation and geopolitical risks, the company will continue to build strong relationships with global automakers, as well as strong cost structure management, to improve profitability even further.
LG Business Solutions Company reported strong second-quarter revenue of KRW 1.54 trillion and an operating profit of KRW 14.3 billion. Revenues increased 19% year on year, owing primarily to the recovery of the business-to-business segment. For stable growth, the company intends to aggressively target the rebounding B2B segment by developing more customized solutions and expanding its product portfolio.
