LG Electronics Posts KRW 781.9B Q3 Operating Profit on TV 'Rebound' and Record Vehicle Solutions Results

Third-quarter revenue of KRW 23.8 trillion; all business divisions profitable
AIDC cooling solutions orders exceed KRW 3 trillion in the first three quarters
All 730,000 treasury shares purchased to be canceled in the fourth quarter

LG Electronics posted double-digit operating profit growth year over year, driven by improved profitability in its TV business and record quarterly results in its vehicle solutions business.

LG Electronics said in its earnings announcement on October 28 that it recorded consolidated revenue of KRW 23.8241 trillion and operating profit of KRW 781.9 billion in the third quarter of this year. Compared with the same period last year, revenue rose 8.9% and operating profit increased 13.5%.

For the first nine months of the year, the company posted revenue of KRW 71.3778 trillion and operating profit of KRW 4.0347 trillion. These figures were up 9.2% and 55.9%, respectively, from the same period a year earlier, reflecting solid growth in both scale and profitability.

The strong results were underpinned by expanded sales of premium products and an upgraded business portfolio. All four business divisions maintained firm profitability, supporting the company's performance.

The Home Appliance Solution (HS) Business Division, which oversees home appliances, recorded third-quarter revenue of KRW 7.0444 trillion and operating profit of KRW 259.2 billion, marking its second consecutive quarter with revenue of more than KRW 7 trillion. Despite rising logistics and marketing costs, it maintained stable profitability through a two-track strategy covering both premium products and the volume zone, alongside improved operational efficiency.

The Media Entertainment Solution (MS) Business Division achieved a significant improvement in performance year over year, with revenue of KRW 5.0215 trillion and operating profit of KRW 146.7 billion. Results were driven by strong sales of premium products, including organic light-emitting diode (OLED) TVs, and robust sales in emerging markets.

The Vehicle Solution (VS) Business Division also set third-quarter records for both revenue and operating profit, posting KRW 2.8261 trillion and KRW 190.3 billion, respectively. Its results were supported by growth in the in-vehicle infotainment (IVI) business and the conversion of its order backlog into sales.

The Eco Solution (ES) Business Division posted revenue of KRW 2.1736 trillion and operating profit of KRW 87.2 billion, benefiting from increased demand in the global commercial heating, ventilation and air conditioning (HVAC) market. It maintained stable profitability despite incurring some costs in preparation for orders for future new businesses.

The company's competitiveness in its core businesses is translating into tangible results in future growth areas. In particular, its artificial intelligence data center (AIDC) cooling solutions business has grown rapidly, with cumulative orders exceeding KRW 3 trillion in the third quarter, up from around KRW 600 billion in the first half of the year. LG Electronics is investing an additional KRW 220 billion to expand production capacity at home and abroad, including by securing a production base in the United States. In the fourth quarter, it plans to focus its resources on responding promptly to large-scale AIDC cooling solutions projects.

In robotics, the company is preparing mass-production infrastructure for actuators, a key component, while pursuing global orders as its data factory, the largest of its kind in South Korea, begins partial operations. Its AI home solutions business is also accelerating efforts to build an AI home ecosystem based on the latest Internet of Things (IoT) technologies in partnership with global Big Tech companies.

LG Electronics said, "In the fourth quarter, we will continue to pursue strategies for qualitative growth in business-to-business (B2B), home appliance subscriptions and online sales, while proactively responding to external uncertainties through supply chain diversification and improved operational efficiency." The company also plans to cancel all 730,000 shares of treasury stock purchased this year during the fourth quarter, as scheduled, to enhance shareholder value.

LG Twin Towers in Yeouido, Seoul. Yonhap News.

This content was produced with the assistance of AI translation services.