LG Electronics reported a rise in profit in the third quarter this year, but the company warned that this was a useful decline from weak demand caused by the global economic slowdown.
The South Korean electronics maker saw its operating profit rise 25.1% year-on-year to ¥746.6 billion. However, last year’s third-quarter operating profit was already low because it reflected a 480 billion hit to shoulder. General Motors recall cost. LG Electronics supplies the separators used by the American car company in the batteries of LG Energy Solutions used in their electric vehicles.
LG Electronics said its third-quarter operating profit should be attributed to a decline caused by the global economic slowdown.
Its profits from sales of its consumer products, such as home appliances and televisions, have declined significantly compared to the surge experienced during the pandemic due to increased raw material prices and logistics costs, while inflation has reduced consumer spending.
LG Electronics’ home appliance business segment contributed 228.3 billion in operating profit, a significant drop from last year due to marketing and logistics costs. Its TV business unit posted an operating loss of 55.4 billion from lower TV demand Affects other TV makers like Samsung. The loss was steeper than when it posted its first operating loss of 18.9 billion in the previous quarter.
However, revenue was up 14.1% from a year ago and was the highest quarterly revenue in the company’s history, the South Korean electronics manufacturer noted. The company explained that this was thanks to increased sales of its premium home appliances and auto parts.
LG Electronics’ auto component business unit also reported operating profit of ¥96.1 billion and revenue of ¥2.3 trillion, up 45.6% from a year ago. Automakers are showing high demand for parts and the company has already responded, LG Electronics said.
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