LG Electronics reports Q1 consolidated revenue of 14.6572 trillion won and operating profit of 921.5 billion won.
Operating deficit significantly reduced due to strong sales of mobile, G6, and budget models.

LG Electronics recorded consolidated sales of 14.6572 trillion won and an operating profit of 921.5 billion won in the first quarter.

Sales increased by 10% compared to the first quarter of last year (13.3621 trillion won). Operating profit rose by 82% from the first quarter of last year (505.2 billion won), the highest since the second quarter of 2009.

The H&A (Home Appliance & Air Solution) business division recorded sales of 4.6387 trillion won and an operating profit of 520.8 billion won. Sales and operating profit increased by 10% and 28%, respectively, compared to the same period last year. The company stated that operating profit and operating profit margin reached all-time highs, and that it achieved a double-digit operating profit margin of 11.2% for the first time in a quarter.

In particular, sales of flagship products such as top-freezer/bottom-refrigerator models, TwinWash washing machines, and Whisen Dual air conditioners, as well as new growth products such as Tromm Stylers, dryers, and PuriCare air purifiers, increased significantly, driving both revenue and profit.

The MC business division recorded sales of 3.0122 trillion won and an operating loss of 200 million won. Sales increased by 2% compared to the same period last year, driven by the launch of the strategic smartphone 'G6' and strong sales of budget smartphone models. Based on business structure improvements in the second half of last year and the expansion of new product launches, the operating loss was significantly reduced compared to the previous quarter.

The home entertainment business recorded sales of 4.3261 trillion won and an operating profit of 382.2 billion won. Despite sluggish demand in emerging markets, sales remained similar to the same period last year (4.3334 trillion won) due to growth in North America, Korea, and Latin America. The operating profit margin (8.8%) reached a record high for the first quarter, driven by increased sales of premium TVs such as OLED and Ultra HD TVs, as well as continuous improvements in the cost structure.

The automotive parts business recorded sales of 876.4 billion won and an operating loss of 14.5 billion won. Sales increased by 48% compared to the same period last year as the company began supplying parts to major clients such as GM in earnest. The VC Business Division continued to incur a slight operating loss as it proceeds with upfront investments for future growth.

Expectations for home appliances in the second quarter as it enters the seasonal peak.

In the home appliance business, demand for products such as air conditioners and refrigerators increases in the second quarter as it enters the seasonal peak. Additionally, an economic recovery is expected, centered on emerging markets such as Asia and Latin America. The H&A Business Division plans to maintain a stable profit structure by expanding the overseas launch of market-leading products, including the ultra-premium 'LG SIGNATURE,' TwinWash, and Styler.

The MC Business Division is laying the foundation for a resurgence in the premium smartphone market and strengthening its profitability-oriented business structure by expanding the overseas launch of the G6. Although demand in the global TV market continues to stagnate, demand is expected to increase in regions with high sales volumes, such as North America, Latin America, and Asia. The HE Business Division plans to maintain a sound profit structure while focusing on the global premium TV market with OLED and NanoCell TVs.

The automotive parts market is expected to see the acceleration of new technology convergence, while the importance of component performance and safety is projected to increase further. The VC Business Division plans to continuously strengthen its convergence technology capabilities by maximizing synergies among LG Group affiliates, and to enhance customer satisfaction through strategic partnerships with customers from the early stages of development.