LG Electronics said improved performance in its core home appliance and vehicle components businesses pushed their combined quarterly revenue above 10 trillion won for the first time.
In its finalized earnings released Tuesday, LG Electronics reported first-quarter operating profit of 1.6737 trillion won, up 32.9% from a year earlier. Revenue rose 4.3% to 23.7272 trillion won. It was the company’s highest first-quarter revenue on record and its third-highest first-quarter operating profit.
Despite economic uncertainty, major businesses including home appliances and TVs supported the results, the company said. It added that steady growth continued in its vehicle components business, a key driver of business-to-business growth.
LG Electronics said growth also continued in B2B, platform and direct-to-consumer experience (D2X) businesses aimed at improving profitability and the quality of growth.
First-quarter B2B revenue was 6.5 trillion won, up 19% from the previous quarter and up 1% from a year earlier, accounting for 36% of total company revenue. First-quarter subscription revenue, including product and service sales, was 640 billion won, up 8% from the previous quarter and up 15% from a year earlier.
The HS division, which handles home appliances such as washers and refrigerators, posted revenue of 6.9431 trillion won and operating profit of 569.7 billion won. Revenue was the division’s highest for any quarter. It posted an operating margin of 8.2% despite higher raw material prices and the impact of U.S. tariffs, the company said.
LG Electronics said its strategy of targeting both premium and volume segments, while expanding online sales and appliance subscriptions, helped performance.
For the second quarter, the company said it plans to sustain revenue growth by strengthening product lineups and expanding efforts in the Global South, while focusing on profitability through supply chain optimization and stronger cost competitiveness. It also said it will continue developing future growth engines including home robots and robot components.
The MS division, which includes TVs, reported revenue of 5.1694 trillion won and operating profit of 371.8 billion won. Operating profit rose sharply from a year earlier and returned to the black from the previous quarter, the company said.
LG Electronics cited strong premium sales and growth in its webOS platform business, along with more efficient marketing spending and reduced fixed costs.
For the second quarter, it said it will prioritize responding to sports events and securing profitability, while expanding partnerships and continuing content investment for the webOS platform business.
The Vehicle component Solutions (VS) division posted revenue of 3.0644 trillion won and operating profit of 211.6 billion won. Both were quarterly records for the division. The company said sales increased, led by European automakers, as premium in-vehicle infotainment solutions expanded to more vehicle models.
LG Electronics said the division’s quarterly operating margin exceeded 6% for the first time since the unit was launched, calling it significant as the vehicle components business continues stable, order-based growth and becomes a steady cash-generating B2B business alongside home appliances.
The Eco Solution (ES) division reported revenue of 2.8223 trillion won and operating profit of 248.5 billion won. The company said both fell from a year earlier due to weaker consumer sentiment tied to the Middle East war and higher labor costs from hiring for key businesses.
LG Electronics said it plans to keep expanding region-tailored product sales, including unitary systems in North America and heat pumps in Europe, and to broaden non-hardware businesses such as installation, operation and maintenance. It also said it will expand its lineup of integrated solutions, including liquid cooling as a next-generation technology alongside air cooling, to improve energy efficiency and pursue opportunities in cooling solutions for AI data centers (AIDC).
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.