SEOUL, October 07 (AJP) - LG Electronics said Wednesday its third-quarter operating profit rose 13.5 percent from a year earlier, supported by solid profitability in its home appliance and vehicle component businesses and improved earnings from televisions.
The company posted a preliminary operating profit of 781.8 billion won ($584 million) for the July-September period, up 13.5 percent from a year earlier but down 50.5 percent from the previous quarter.
Revenue rose 8.9 percent on year to 23.83 trillion won ($17.8 billion), while remaining virtually unchanged from the second quarter.
LG attributed the revenue growth to resilient demand for its core products, continued expansion in business-to-business operations and sales growth in emerging markets, including the Global South, despite an unfavorable business environment stemming from the war in the Middle East.
Profitability also improved as the company's home appliance and vehicle component businesses maintained solid margins, while its television business posted a sharp improvement from a year earlier.
Companywide cost reductions and operating leverage from higher sales helped offset increases in logistics, material and fixed costs, LG said.
For the first nine months of the year, LG reported cumulative revenue of 71.38 trillion won, up 9.2 percent from a year earlier, while operating profit jumped 55.9 percent to 4.03 trillion won.
It marked the first time the company's nine-month revenue surpassed 70 trillion won and operating profit exceeded 4 trillion won.
By business, LG said its Home Appliance Solution division continued to grow on increased sales of premium and mass-market products, alongside expansion in subscription services, online sales and B2B operations.
Its Media Entertainment Solution business recorded year-on-year sales growth, helped by stronger sales of premium televisions, including OLED models, and expansion in emerging markets. The division remained profitable as LG increased the share of premium products and streamlined marketing spending.
The Vehicle Solution business maintained steady growth as its order backlog translated into sales, while a higher proportion of premium automotive infotainment products helped strengthen profitability.
The Eco Solution business, which includes heating, ventilation and air conditioning products, maintained revenue at roughly the previous year's level as overseas sales increased. Profitability edged down, however, as LG continued investing in new production capacity and hiring for new businesses.
LG is also expanding investment in artificial intelligence-related growth areas, including cooling systems for AI data centers and robotics. The company is expanding cooling-system production capacity at home and abroad while investing in a robotics data factory in Seoul and actuator production infrastructure in Changwon, about 300 kilometers southeast of Seoul.
The figures are preliminary and were compiled under Korean International Financial Reporting Standards.
LG Electronics is scheduled to release its finalized third-quarter results, including net income and detailed performance by business division, later this month.
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