LG Electronics (LG) has announced a 2020 third-quarter revenue of $14.24 billion and operating profit of $807.14 million.
In a statement, LG said its sales and profits were the highest for a third quarter in 62 years of LG Electronics’ history.
“Led by strong growth in home appliances and home entertainment, overall sales increased 7.8 per cent and operating income improved by 22.7 per cent compared with the same period last year”, the company said.
The LG Home Appliance & Air Solution Company reported third-quarter revenues of $5.18 billion, posting a 15.5 per cent increase from the same quarter last year.
The company also recorded its highest ever third-quarter operating profit of $565.2 million, an increase of 56.6 per cent from the same quarter last year, it added.
Profit margin of 10.9 per cent marked the third consecutive double-digit quarter for the company.
For the fourth quarter, the company said it expects to maintain this momentum with plans to grow profitability even more through better cost optimization.
The LG Home Entertainment Company’s sales in the third quarter stood at $3.09 billion, 14.3 per cent higher than the same period last year driven primarily by the resurgence in demand of premium products such as OLED and large screen TVs in mature markets of North America and Europe.
Its operating income totaled $274.88 million, 13.2 per cent higher than that of the same period of 2019 as a result of more strategic marketing investments despite higher LCD panel prices. The company aims to continue its success by increasing the proportion of premium TVs and its online sales, said the statement.
The LG Mobile Communications Company generated $1.28 billion in sales in the third quarter, virtually unchanged from last year, and 16.5 per cent higher than in the previous quarter. Third-quarter operating loss narrowed from a year ago to $124.9 million due in large part to increased efficiency in production, cost savings from increased ODM (original design manufacturing) and stronger demand for mass-tier models.
Moreover, the company said it plans to strengthen its mass-tier lineup in North America and Latin America as well as continuing to improve operational efficiency.
The LG Vehicle Component Solutions Company recorded quarterly revenues of $1.39 billion, a 23.5 per cent increase from the same period the previous year.
An operating loss of $ 55.7 million narrowed significantly from the previous quarter asthe main OEMs in North America and Europe resumed production and cost management efforts took effect. In the fourth quarter, the company said it plans to maximise sales through intense supply chain management and further improve profitability with better cost management.
The LG Business Solutions Company generated third-quarter sales of $ 1.25 billion, an increase of 13.4 per cent from the previous quarter and 1.9 per cent lower than last year.
Its operating profit totalled 64.8 million, with a 31.1 per cent drop from the same period a year earlier and 22 per cent lower than the previous quarter.
To improve business-to-business performance in the final quarter of the year, “the company is planning to more aggressively target non face-to-face sales opportunities, improve product competitiveness and strengthen online marketing activities”, it added in the statement.