LG Electronics said on April 29 that external uncertainty, including the war in the Middle East and concerns about U.S. inflation, has delayed a recovery in consumer sentiment and weighed on revenue.
The company said operating profit faced pressure from some higher raw material prices and the impact of tariffs that intensified in the second half of last year, but it is maintaining solid profitability by expanding higher-margin businesses.
LG Electronics said uncertainty will remain high in the second quarter, citing volatility in U.S. tariff policy and the possibility that interest-rate cuts could be delayed. It added that the war in the Middle East and rising prices make it difficult to expect a demand rebound.
As a response, the company said it will strengthen its product lineup and expand its B2B, subscription and online businesses. LG Electronics said it will continue revenue growth by stepping up its push into Global South markets, focusing on the fast-growing B2B, subscription and online segments.
On its vehicle components business, LG Electronics said a clear recovery in global automaker demand is likely to remain limited for the time being. It said it will respond to market volatility by expanding mass production for new projects and reshaping its portfolio toward higher value-added products. The company added that it plans to sustain profit-based growth by focusing on strategic customer collaboration and cost efficiency.
* This article has been translated by AI.
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