LG Electronics Inc. (LG) has reported consolidated sales of KRW 15.43 trillion (USD 13.76 billion) and operating profit of KRW 748.8 billion (USD 667.7 million) for the third quarter of 2018.
Revenues were the highest among the three quarters this year, increasing 2.7% from the second quarter with operating income up 45% from the same period the previous year, while the mobile business narrowed its losses significantly.
The LG Home Appliance & Air Solution Company recorded third-quarter revenues of KRW 4.85 trillion (USD 4.33 billion) and operating profit of KRW 409.7 billion (USD 365.3 million). Sales were especially strong in Korea, Europe and North America despite the economic slowdown and currency challenges in Asia, Latin America, the Middle East and Africa. Profitability remained strong and was boosted by the growth of premium appliance sales and continued cost management, LG explained.
The LG Home Entertainment Company generated third-quarter operating profit of KRW 325.1 billion (USD 289.9 million) on sales of KRW 3.71 trillion (USD 3.31 billion). Even with demand for TV products in developing markets slowing, sales of premium OLED and UHD TVs remained strong. As the year comes to a close, the company reveals that it plans to increase its focus on premium TV models in key markets to maintain profitability despite the sluggish overall TV market.
The LG Mobile Communications Company recorded sales of KRW 2.04 trillion (USD 1.82 billion) and operating loss of KRW 146.3 billion (USD 130.5 million). Despite the weakening demand for smartphones worldwide and increased competition, the company significantly reduced its operating deficit as a direct result of its business plan and its stronger focus on mid-range products. The rollout of its high-end V40 ThinQ smartphone is expected to boost sales in the fourth quarter, LG adds. With its business improvement strategy proceeding as planned, the company continues to consolidate and implement a more profitable foundation.