LG Electronics Inc. (LG) has reported consolidated global sales of KRW 15.02 trillion (USD 13.9 billion) and operating profits of KRW 771 billion (USD 715.1 million) for the second quarter of 2018, meaning first-half 2018 sales and operating profits were at all-time record highs.
Second-quarter sales rose 3.2% while operating profits increased 16.1% from the same period last year. Strong profitability from home appliances and air solutions and premium home entertainment products offset second-quarter operating losses from vehicle components and mobile communications, the company explained.
The LG Home Appliance & Air Solution Company posted strong second-quarter 2018 sales of KRW 5.26 trillion (USD 4.88 billion) and operating profits of KRW 457.2 billion (USD 424.04 million). Quarterly revenues grew 4.3% from last year, in part due to strong seasonal sales of air conditioners, and increased shipments of the LG Styler garment care system and air purifiers, especially in the domestic Korean market. Quarterly operating income increased 1.7% compared to the same period of 2017, driven by cost management and sales of premium clothes washers and refrigerators, offsetting the effects of higher raw material prices and unfavourable exchange rates. First half revenues for LG Home Appliances and Air Solutions were the highest in company history, exceeding KRW 10 trillion (USD 94.66 billion) for the first time.
The LG Home Entertainment Company reported second-quarter sales of KRW 3.82 trillion (USD 3.54 billion) and operating profit of KRW 407 billion (USD 377.48 million). Revenues increased 4.1% from the 2017 quarter due to healthy sales of LG OLED TVs, LG SUPER UHD TVs and other premium products. Operating income increased 44.1% from the second quarter last year, repeating Home Entertainment’s double-digit operating profit margin performance from the 2018 first quarter.