Korean manufacturer LG Electronics (LG) has announced its third-quarter 2024 consolidated revenue of KRW22.18trn (US$16bn) and an operating profit of KRW751.9bn (US$542m). This revenue marks the highest ever for a third quarter, while the operating profit ranks as the fourth highest in the company’s history.
Several external factors impacted the third quarter, including a prolonged delay in market demand recovery and ongoing geopolitical conflicts worldwide. These challenges led to a rise in global shipping expenses, contributing to increased costs.
Despite these obstacles, LG has achieved year-over-year revenue growth for four consecutive quarters by upgrading its business portfolio. This includes transforming business methods and models and expanding B2B operations.
These efforts have allowed LG to partially offset the unavoidable cost increases, enabling the company to maintain a robust operating profit, signifying the retention of strong fundamental competitiveness.
Looking ahead, LG plans to further accelerate its business transformation by expanding home appliance subscriptions, direct-to-consumer (D2C) sales and volume zone product sales. In addition, the company aims to drive steady growth in the B2B sector while also expanding platform-based content and service businesses.
The LG Home Appliance & Air Solution Company generated third-quarter revenue of KRW8.34trn (US$6bn) and an operating profit of KRW527.2bn (US$379m). Compared to the same period last year, revenue increased by 11.7 percent and operating profit by 5.5 percent.
The LG Home Entertainment Company posted third-quarter revenue of KRW3.75trn (US$2.69bn) and an operating profit of KRW49.4bn (US$35m). Revenue increased by 5.2 percent compared to the same period last year, driven by increased shipments in Europe – a key market for OLED TVs.
The LG Vehicle component Solutions Company reported third-quarter revenue of KRW 2.61trn (US$1.87bn) and an operating profit of KRW1.1bn (US$792m). Revenue increased compared to the same period last year but slightly decreased from the previous quarter due to a slowdown in electric vehicle (EV) demand. Operating profit also declined, impacted by increased R&D expenses for securing software-defined vehicle (SDV) technology and preemptive investments for mass production of order volumes.
The LG Business Solutions Company reported third-quarter revenue of KRW1.40trn (US$1bn) and an operating loss of KRW76.9bn (US$53m).
Meanwhile, following a board resolution last month, LG decided to discontinue its battery pack business.
