LG Electronics had record sales and operating profit for the second quarter

Korea's LG Electronics (hereafter, LG) announced results (consolidated basis) for the 2nd quarter (April-June) of 2024 on 7/25 (see attached materials table). Sales for the second quarter were 21 trillion694.4 billion won (approx. 2 trillion386.4 billion yen, 1 won = approx. 0.11 yen), up 8.5% from the same period last year, and operating profit increased 61.2% to 1 trillion196.2 billion won. LG highly praised the results for the 2nd quarter, saying “through balanced growth in the electrical equipment business, which is one axis of the main business, household appliances, and the electrical equipment business, which is one axis of 'future growth', both sales and operating income hit record highs for the 2nd quarter.” The financial results for the second quarter of 2024 announced by LG by business division are as follows.

(1) H&A (Home Appliance & Air Solution) Business Division (washing machines, refrigerators, air conditioners, etc.)

Sales were 8 trillion842.9 billion won, and operating profit was 694.4 billion won. Sales increased 10.6% from the same period last year, and recorded a record high on a quarterly basis. We succeeded in expanding our business through diversification of lineup and price ranges in line with growing demand in emerging markets such as Latin America and Africa. The results of new businesses, such as consumer electronics subscriptions, also contributed to good business results.

(2) HE (Home Entertainment) Business Division (TV, etc.)

Sales were 3 trillion 618.2 billion won, and operating profit was 97 billion won. Sales increased due to a recovery in demand in the European region, which is the main market for OLED (OLED) televisions, and rapid growth in the webOS (Note) content service business. Operating profit declined compared to the same period last year due to cost increase factors such as LCD (liquid crystal) panel prices, etc.

(3) VS (Vehicle Component Solutions) Business Division (automotive electrical parts, etc.)

Sales were 2 trillion691.9 billion won, and operating profit was 81.7 billion won. Sales increased 1.0% from the same period last year, and operating profit successfully turned into a surplus. As a result, sales were the largest ever on an all-quarter basis, and operating profit was the largest ever for the second quarter. Despite the effects of a temporary slowdown in demand in the electric vehicle market in the second quarter, growth continued in response to an increase in demand for premium automotive infotainment (infotainment) products.

(4) BS (Business Solutions) Business Division (monitors, laptop computers, etc.)

Net sales were 1 trillion464.4 billion won, and operating loss was 5.9 billion won. Sales increased 9.9% compared to the same period last year due to the expansion of sales of strategic products such as electronic blackboards and gaming monitors, etc., but costs of LCD panels etc. continued to rise, and investment in new training businesses such as electric vehicle chargers and robots continued, so operating losses were recorded.

(Note) WebOS is one of the operating systems (basic software) such as Android and iOS, and is a Linux-based mobile operation system currently being developed and used by LG.