Despite lackluster smartphone sales, LG Electronics marked record second-quarter revenues, with its home appliances division propping up the company’s performance.
LG said Tuesday that it marked consolidated revenue of 15.6 trillion won ($13.2 billion) and 652 billion won in operating profit between April and June, resulting in a 4.1 percent increase in revenue and 15 percent fall in operating profit on-year.
The figures were led by performances from the home appliances and mobile communication divisions.
LG’s home appliances and air solutions division marked record quarterly revenues surpassing the 6 trillion-won threshold for the first time, and operating profits of 717.5 billion won — pushing up its on-year revenue and operating profits by 16 percent and 55 percent, respectively.
LG recorded its best-ever first-half revenue of 30.5 trillion won.
The company’s net earnings tumbled 67.5 percent from a year earlier, however, due to lower-than-anticipated smartphone sales.
LG’s mobile communications division marked revenue of 1.6 trillion won and an operating deficit of 313 billion won.
The revenue was attributed to LG’s 5G smartphone LG V50 ThinkQ’s performance, but sluggish sales of the 4G lineup and budget devices weighed on the 5G phones’ marketing costs and one-off costs for plant relocation, LG said.
For the next quarter, LG said it would expand the premium lines for home appliances, mobile and auto parts and improve on raw materials costs to maintain profitability in the third quarter.―Korea Herald