On Friday, LG Electronics announced that its third-quarter operating profit had surged by over 33%, due to the successful sales of new-platform services and automotive electronics, surpassing market expectations.
The company revealed in a regulatory filing that their operating income for the July-September period had amounted to 996.7 billion won (US$738.2 million), an increase of 33.5% from 746.6 billion won a year ago. This was 24.9% higher than the average estimate provided by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Net profit also rose 44.2% to 485.2 billion won, while sales dropped 2.2% to 20.7 billion won.
LG Electronics declared that their business-to-business segments, such as automotive electronics and air solutions businesses, had been the primary contributors to the strong bottomline, accounting for more than 30% of their sales. Additionally, their new platform-based service business, which links high-end home appliances and content subscription services, also made a significant contribution to the impressive operating profit.
The company’s home appliance business generated quarterly sales of 7.46 trillion won, along with an operating profit of 504.5 billion won. For the TV business, LG Electronics earned 3.57 trillion won in sales and 110.7 billion won in operating profit. Lastly, their vehicle components business, a potential future growth driver, reported a record 134.9 billion won in operating profit, with sales of 2.5 trillion won.
This file photo taken on July 30, 2020, shows the headquarters of LG Group in Seoul. (Yonhap)