LG's financial report exceeds market expectations

LG Electronics released its preliminary third-quarter financial report on the 7th, with results exceeding market expectations. South Korean financial media "fnnews" mentioned in its report that this is LG's best profit record in a decade.

LG Electronics released preliminary financial reports, indicating that the revenue in the third quarter of this year was 15.70 trillion won and the profit was 781.1 billion won. In terms of revenue, it was not only 1.8% higher than the same period last year, but also set a historical record. The cumulative revenue this year also set a record of 46.24 trillion won. In terms of profit, it was 4.3% higher than the same period last year, the best performance in ten years, and far exceeded the industry's expectation of 600 billion won.

Industry insiders pointed out that in the past, affected by the mobile phone business, LG Electronics mostly had good performance in the first half of the year and poor performance in the second half of the year, but this time all departments have seen improvements.

It is worth noting that the preliminary financial report is a forecast, and LG Electronics did not provide specific performance of each department. However, the industry generally believes that this is the result of LG's successful reduction of the deficit in the smartphone business (MC business headquarters) and the growth of performance. LG Electronics decisively reduced the cost of mobile phone manufacturing and transferred all Korean smartphone production bases to Vietnam and Brazil, significantly reducing production costs and labor costs. At the same time, the dual-screen mobile phone V50 ThinQ was widely praised, with sales exceeding 300,000 units. The new generation of dual-screen mobile phone V50S ThinQ, which was launched in the fourth quarter, is expected to increase its market influence.

On the other hand, the outside world expects that LG's strength "home appliances" will maintain solid performance. The H&A Business Headquarters (home appliances business) pointed out that in Korea, Europe, Asia and other places, the sales of new home appliances such as air purifiers and cordless vacuum cleaners have increased. The HE Business Headquarters (TV, computer business) has increased sales of OLED TVs, and revenue and operating profit are expected to return to last year's level.

An LG Electronics official said that although the specific revenue of each business area is unclear, the operating loss of the MC business headquarters has been reduced by at least 100 billion won compared with the previous quarter, and the sales of the H&A and H&E business headquarters have also exceeded expectations, setting a record high sales.