LG Electronics Triples Profit on Demand for Home Appliances, Vehicle Parts — Update

By Kwanwoo Jun

LG Electronics more than tripled its second-quarter net profit after a profit turnaround in the prior quarter, with home appliances and vehicle components driving the solid results at the South Korean consumer-electronics giant.

Net profit for the quarter was 629.50 billion won, the equivalent of $455.0 million, up sharply from 195.30 billion won a year earlier, the company said Thursday.

That missed a FactSet-compiled consensus forecast for net profit of 633.86 billion won.

Revenue during the period rose 8.5% to 21.694 trillion won, and operating profit jumped 61% to 1.196 trillion won, largely in line with the company's preliminary forecasts.

LG Electronics said the figures were new record highs for second-quarter revenue and operating profit.

Combined sales from its home-appliance and air-solution segment and vehicle-component business rose 8.2% to nearly 12 trillion won for the quarter, it said.

The company touted its rapidly expanding business-to-business operations as a new and steady growth engine. Demand for air conditioners, chillers and air purifiers from artificial-intelligence data centers and other corporate clients provides opportunities for future growth, it said.

Despite the recent slowdown in the global electric-car market, the company said its vehicle-component business continues to grow on demand for premium in-vehicle infotainment products and other safety-driving features.

LG Electronics said its television and home-entertainment business is also recovering gradually, thanks to demand for premium organic light-emitting diode TVs in Europe and other advanced economies.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

July 25, 2024 03:46 ET (07:46 GMT)

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