LG Electronics posts 12% drop in profit on weaker demand


Seoul, Jul 29 (IANS): LG Electronics on Friday said its second -quarter operating profit decreased 12 per cent (on-year) amid rampant inflation that hurt consumer demand for TVs and other home appliances.

Its operating income came in at 792 billion won $609 million for the April-June quarter, falling short of analysts' expectations surveyed by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Revenue increased 15 per cent from the year-ago quarter to 19.5 trillion won.

LG said its TV business shrank for the three months ending in June, as marketing costs rose and people spent less time at home.

While overall consumer demand declined, the company said premium home appliances were still in high demand, especially in North America, and continued to deliver double-digit growth.

The company had earlier estimated decrease in its second-quarter operating profit on weaker demand for TV and home appliances amid rising inflation and raw material costs.

Analysts suggested less upbeat earnings for LG for the remaining year, as pandemic-driven pent-up demand for TV has lost steam and rate increases in major economies to control inflation weakened consumer-spending power.

Also, high shipping costs amid supply chain disruptions are hurting the company's bottom line.

LG's electric vehicle (EV) components business has greatly improved performance on growing demand from customers, which include Mercedes-Benz AG and General Motors, and increased profitability.

LG secured $6.1 billion worth of new orders for electric vehicle (EV) parts and solutions in the first half.

 

  

Top Stories


Leave a Comment

Title: LG Electronics posts 12% drop in profit on weaker demand



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.