Provisional sales of 20.74 trillion won and operating profit of 639.1 billion won in Q2
LG Electronics AI TV. Provided by LG Electronics
, ‘[Financial News] LG Electronics announced on the 7th that it recorded provisional sales of 20.74 trillion won and an operating profit of 639.1 billion won for the second quarter of this year on a consolidated basis. This represents a decrease of 4.4% and 46.6% in sales and operating profit, respectively, compared to the same period last year. ‘,
, ‘Amidst a delay in the recovery of consumer sentiment in major markets, the adverse business environment continued, with changes in US trade policies resulting in increased tariff costs and intensified market competition entering into the second quarter. ‘,
, ‘By business sector, the main businesses such as home appliances and the business-to-business (B2B) sectors including automotive electronics, and heating, ventilation, and air conditioning (HVAC), maintained healthy profitability despite the unfavorable conditions. ‘,
, ‘However, factors such as reduced demand in the Media Entertainment Solution (MS) business unit, increased prices for liquid crystal displays (LCD), and increased marketing expenses due to intensified competition impacted overall performance. Increased costs from US general tariffs, derivative tariffs on steel and aluminum, and logistics costs also affected profitability. ‘,
, ‘In the second half of the year, LG Electronics plans to focus on reinforcing the fundamentals of the business by concentrating on “qualitative growth” areas represented by △automotive electronics and HVAC B2B businesses △subscription-based and webOS non-hardware (Non-HW) services, and △direct-to-consumer (D2C) sales. ‘,
, ‘The B2B sector is advantageous for expanding solutions businesses and building entry barriers based on stable demand and price volatility and customer relationships. Non-HW services are likely to achieve a recurring revenue structure and high profitability, while D2C is expected to be favorable for improving profit structures and enhancing brand value. ‘,
, ‘#OperatingProfit #LGElectronics #Tariffs #Sales ‘,
,