Results for the LG Mobile Communications Company, which officially winds down at the end of July, are no longer included in quarterly earnings reports
LG Electronics Inc. (LG) has announced its highest quarterly revenues ever as the company continued to expand its market share for home appliances and consumer electronics outside of South Korea.
The company reported worldwide consolidated revenues of KRW 17.11 trillion (USD 15.26 billion) rose 48.4 per cent from the second quarter a year ago. Second-quarter 2021 operating profit increased 65.5 per cent from last year to KRW 1.11 trillion (USD 992.08 million). Results for the LG Mobile Communications Company, which officially winds down at the end of July, are considered discontinued operations and are no longer included in quarterly earnings reports.
The LG Home Entertainment Company grew its revenues to KRW 4.04 trillion (USD 3.60 billion) in the second quarter, a substantial 79.1 percent increase compared to the same period last year. Operating profit stood at KRW 333.50 billion (USD 297.35 million), an increase of 216.4 per cent year-on-year. The company thanked the growing popularity of premium OLED TV products and the recovery of the global TV market, which was negatively affected last year due to retail store shutdowns.
“With the price of TV panels continuing to rise, LG’s Home Entertainment strategy will center on growing the premium TV segment and nimble inventory management,” read an official statement released by the company.
The LG Home Appliance & Air Solution Company reported revenues in the second-quarter of KRW 6.81 trillion (USD 6.08 billion), a healthy increase of 32.1 percent from the second quarter a year ago. Operating profit grew 6.8 percent from last year’s second quarter to KRW 653.60 billion (USD 582.75 million), mainly driven by stronger sales in markets outside of South Korea and improved resource management, although costs are expected to increase as raw materials become scarcer while the pandemic-impacted world begins to return to normal.
“Product competitiveness and operational efficiencies are expected to help LG maintain sales and profit momentum for major appliances in key markets,” noted the company.