LG Electronics sets new record for Q3 results, with operating profit approaching KRW 1 trillion.
Published2020.11.02 10:25Operating profit reached its highest level ever in the third quarter
LG Electronics announced on the 30th that it recorded consolidated sales of KRW 16.9196 trillion and operating profit of KRW 959 billion for the third quarter. Compared to the same period last year, sales increased by 7.8% and operating profit by 22.7%.
As demand for home appliances and TVs, which had been sluggish in the first half of the year due to COVID-19, recovered, sales reached the second-highest quarterly figure ever, and operating profit reached the highest level in the third quarter.
By business division, the home appliance and TV businesses achieved double-digit growth compared to the same period last year, leading to the overall strong performance.
The H&A (Home Appliances) division, responsible for home appliances, achieved KRW 671.5 billion in operating profit, accounting for 70% of the company's total, and its cumulative operating profit since the first quarter of this year has already surpassed KRW 2 trillion. Previously, LG Electronics' home appliance business had never exceeded KRW 2 trillion in annual operating profit. However, sales in the third quarter of this year reached KRW 6.1558 trillion, a record quarterly record.
As people spend more time at home, demand for home appliances has increased, leading to balanced growth in both domestic and international sales. New appliances, particularly steam appliances like Stylers, dryers, and dishwashers, contributed significantly to third-quarter performance.
HE (Home Entertainment) also recorded sales of KRW 3.6694 trillion and operating profit of KRW 326.6 billion. Although rising LCD panel prices were a burden, sales increased compared to the same period last year due to increased demand in advanced markets such as North America and Europe and brisk sales of premium products such as OLED TVs and NanoCell TVs.
The mobile (MC) business continued to post losses for 22 consecutive quarters, although losses narrowed. During this period, sales reached KRW 1.5248 trillion and an operating loss of KRW 148.4 billion was recorded.
The automotive parts (VS) business posted sales of KRW 1.6554 trillion, driven by improved demand for parts compared to the previous quarter as operations at automakers in North America and Europe normalized. Operating loss decreased significantly from the previous quarter to KRW 66.2 billion, driven by increased sales and an improved cost structure.
The Business Solutions (BS) division posted sales of KRW 1.4828 trillion and operating profit of KRW 77 billion. The prolonged COVID-19 pandemic has hampered business-to-business (B2B) transactions, leading to intensified price competition, resulting in a decline in both sales and operating profit.
관련뉴스
LG Electronics, which solidified its position as the world's No. 1 home appliance maker, is satisfied with reducing its phone deficit.
LG Electronics announced that it achieved consolidated sales of 12.8338 trillion won and operating profit of 495.4 billion won in the second quarter of 2020. Sales and operating profit decreased 17.9% and 24.1%, respectively, compared to the same period of the previous year. Based on the first half of this year, sales decreased 9.8% compared to the same period of the previous year, while operating profit increased 2.1%. Operating profit for the first half exceeded 1.5 trillion won for four consecutive years.
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삼성전자가 3분기 연결 기준 매출 66조9600억원을 기록했다. 이는 종전 분기 최고치인 2017년 65조9800억원을 뛰어넘는 역대 최대 실적이다. 영업이익도 12조3500억원으로 전년 동기 대비 58.8% 증가했다. 코로나로 모바일(스마트폰)과 TV·가전 실적이 크게 개선되고 미국의 중국 화웨이 제재 덕에 반도체 부문도 선전한 덕이다. 삼성전자의 분기 영업이익이 10조원을 넘는 것은 2018년 4분기(10조8000억원) 이후 7분기 만이다. 부문별로 모바일(IM)의 영업이익은 4조4500억원, TV·가전(CE) 1조5600억원, 반도체는 5조5400억원, 디스플레이는 4700억원을 기록하는 등 세트와 부품 모두 고르게 양호한 실적을 냈다.
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