LG Electronics recorded a profit increase in the third quarter of this year but the company warned that it was an effective drop due to weak demand caused by the global economic downturn.
The South Korean electronics maker said its operating profit rose 25.1 percent year-on-year to 746.6 billion won. However, last year’s third-quarter operating profit was low as it reflected the 480 billion won it incurred. General Motor’s cost of recall. LG Electronics supplies the separators used in LG Energy Solution batteries used by the US automotive giant in their electric vehicles.
LG Electronics said this means its third-quarter operating profit should be seen as a drop due to the global recession.
Profits from the sale of consumer products such as home appliances and TVs have fallen significantly from the highs enjoyed by the company during the pandemic due to rising raw material prices and logistics costs amid inflation. reduce consumer spending.
LG Electronics’ home appliance business contributed 228.3 billion won in operating profit, down significantly from last year due to marketing and logistics costs. Its TV business unit recorded an operating loss of 55.4 billion won due to low TV demand, which was also affects other TV manufacturers such as Samsung. The loss was higher than the previous quarter when the company recorded its first operating loss of the year of 18.9 billion won.
However, revenue was up 14.1% from a year ago, and it was the highest quarterly revenue in the company’s history, the South Korean electronics maker noted. The company explains that this is due to increased sales of its high-end home appliances and auto parts.
LG Electronics’ vehicle parts business also recorded an operating profit of 96.1 billion won and revenue of 2.3 trillion won, up 45.6% from a year ago. Automakers show higher demand for parts and the company has proactively responded to this, LG Electronics said.
