LG Electronics Inc. (LG) announced its consolidated second-quarter 2023 revenue of KRW 20 trillion, with operating profit of 741.9 billion South Korean won (KRW).
LG announced financial results for the second quarter of 2023.
According to a statement from the company, LG recorded the highest second-quarter revenues in its history. The record revenue reflected the company’s actions to fundamentally improve its business structure by pursuing new platform-based service businesses and continually expanding its business-to-business (B2B) segments.
Operating income is 6.3 percent lower than last year’s second quarter, mainly for the second quarter of 2023 as a one-off.
LG Home Appliances and Air Conditioning Solutions Company posted second-quarter revenue of KRW 7.99 trillion and operating profit of KRW 600.1 billion. Despite intensifying market conditions, the business unit recorded strong profitability thanks to increased sales of high-demand products such as air conditioners and products with energy-saving heat pump features.
LG will benefit from high-efficiency innovations
Operating profit increased 40 percent year-on-year, reflecting efficient cost structure management. As demand for green technologies grows in Europe, North America and around the world, LG will leverage its high-efficiency innovations, including heat pumps and ESS. At the same time, the company sees the electrification trend as an opportunity for future growth in the HVAC business. In the third quarter, the company will launch new LG ThinQ UP 2.0 home appliances with hyper personalization, subscriptions and services.
LG Home Entertainment Company recorded second-quarter revenue of KRW 3.15 trillion and operating profit of KRW 123.6 billion.
Vehicle Component Solutions company generated revenue of KRW 2.66 trillion
LG Vehicle Component Solutions Company’s second-quarter revenue was KRW 2.66 trillion, the second-highest in the company’s history. The company achieved the highest operating profit of the second quarter in terms of business performance, with an operating profit of KRW 89.8 billion excluding non-recurring expenses such as one-off provisions. But the company’s operating margin resulted in an operating loss of KRW 61.2 billion, after including a one-time provision of KRW 151 billion related to General Motors’ recall of the Chevy Bolt EV. This provision reflects increases in material costs during the recall period.
LG Business Solutions Company generated second-quarter revenue of KRW 1.33 trillion with operating profit of KRW 2.6 billion. Both revenue and operating profit fell slightly compared to the same period last year as demand for IT products continued to soften. From the third quarter, the demand for IT products is expected to show a gradual recovery compared to the first half.