LG Electronics recorded the highest sales in the first quarter thanks to its main business division: TV and home appliances.
LG Electronics announced on April 26th that its operating profit for the first quarter of 2018 increased by 20.2 percent from a year ago to 936 million dollars.
Revenue rose 3.2 percent to 14.13 billion dollars. LG Electronics’ quarterly operating profit exceeded 936 million dollars in 9 years after the 116 million dollars in the second quarter of 2009.
According to an LG Electronics official, sales of high-end products such as the premium home appliances brand ‘LG Signature’ and Organic Light-Emitting Diode (OLED) TVs are the main reasons for the earnings surprise.
The operating profit from H&A, which is in charge of household appliances, and the HE division, which is in charge of TV, recorded 518.02 million dollars and 540.7 million dollars, respectively.
It is the first time that the total operating profit of the household appliances that combined these two business divisions exceeded 936 million dollars.
The H&A division’s operating profit rose 8.2 percent from last year, and sales increased by 9.3 percent to 4.6 billion dollars.
In addition to air conditioners and twin wash, the product lines that contribute to the improvement in performance are new growth products such as dyers, stylers, and air cleaners.
LG’s HE division, which recorded the highest operating profit margin of 14 percent, recorded a 7.4 percent increase in sales to 3.86 billion dollars thanks to OLED and ultra-high definition TVs.
Their MC division, which is in charge of the smartphone business, is facing negative operating loss for the 12th consecutive quarter, but it is read as a positive signal that its business structure has been tapered.
In the first quarter, LG Electronics’ MC division recorded sales of 2.02 billion dollars and operating loss of 127.4 million dollars. Compared to the operating loss of 199.6 million dollars in the fourth quarter of last year, it improved somewhat.
Sales declined year-on-year due to the decision to launch the G7 ThinQ smartphone in the second quarter.
LG Electronics’ G7 ThinQ will make its debut in Korea next month on May 3th.
