LG reports 2.7% increase in 3Q18 revenues

The LG Home Appliance & Air Solution Company recorded third-quarter revenues of KRW4.85 trillion and operating profit of KRW409.7 billion. Sales were especially strong in Korea, Europe and North America despite the economic slowdown and currency challenges in Asia, Latin America, the Middle East and Africa, LG said. Profitability remained strong and was boosted by the growth of premium appliance sales and continued cost management.

The LG Home Entertainment Company generated third-quarter operating profit of KRW325.1 billion on sales of KRW3.71 trillion. Even with demand for TV products in developing markets slowing, sales of premium OLED and UHD TVs remained strong. As the year comes to a close, the company said it plans to increase its focus on premium TV models in key markets to maintain profitability despite the sluggish overall TV market.

The LG Mobile Communications Company recorded sales of KRW2.04 trillion and operating loss of KRW146.3 billion. Despite the weakening demand for smartphones worldwide and increased competition, the company said it significantly reduced its operating deficit as a direct result of its business plan and its stronger focus on mid-range products. The rollout of its high-end V40 ThinQ smartphone is expected to boost sales in the fourth quarter. With its business improvement strategy proceeding as planned, the company continues to consolidate and implement a more profitable foundation.

The LG Vehicle Components Company posted third-quarter revenues of KRW1.18 trillion, an increase of 41% compared with the same period last year and 35% higher than the previous quarter mainly due to increased production related to new projects and the acquisition of automotive lighting and headlight systems provider ZKW Group. The third quarter of 2018 marks the first time vehicle component sales have exceeded KRW1 trillion in the company's history. Rising raw material prices and increased costs related to new projects contributed to a quarterly operating loss of KRW42.9 billion.

The LG Business-to-Business Company generated sales this quarter of KRW576.7 billion and operating profit of KRW35.1 billion. Profitability was negatively affected by import duties in the United States and the falling price of solar modules in key markets. While price competition in the solar module market will remain challenging, demand for premium information display products is expected grow in the fourth quarter.