October 08, 2019 13:00
LG Electronics achieved better-than-expected performance results in the third quarter of the year.
According to preliminary results released on Monday, the electronic giant posted sales of W15.7 trillion and an operating profit of W781.1 billion during the June-September period (US$1=W1,198). That is an increase of 1.8 percent in sales and 4.3 percent in operating profit from the same period last year.
Sales were highest ever for a third quarter, while operating profit was way more than the market expectation of W600-W650 billion. Total sales for the first three quarters also amounted to a record W46.24 trillion.
The final results will be out at the end of the month.
Home appliances led the boom with an estimated sales of over W5 trillion. Except air conditioners, most home appliances sold more than expected.
New high-tech products such as clothing-care gadgets and air purifiers continued to be in high demand, and so did its premium brand of products. In the TV business, the decreased cost of raw LCD panels helped boost operating profit along with increased sales. But LG's smartphone business has posted losses for the 18th quarter running after new models once again flopped.
But the losses were slashed in half compared to the previous quarter as the company moved its smartphone production to Vietnam earlier this year in a bid to reduce costs.
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