Q2 records a 12% decline for LG Electronics
LG Electronics’ second-quarter operating profit was down 12% year-on-year due to the inflation-induced impact on consumer buying habits for home appliances such as the television, washing machines, etc.
LG Electronics’ second-quarter operating profit was down 12% year-on-year due to the inflation-induced impact on consumer buying habits for household appliances such as television, washing machines, etc. Contrary to market analysts’ forecasts, for the April-June quarter, the company recorded 792 billion won and $609 million in operating profit.
There was a significant increase in revenue of 15% in the year-ago quarter, reaching 19.5 trillion won. The company’s TV business saw a slump in those three months due to consumers preferring to stay at home less. However, high-end home appliances were still a popular choice for consumers and continued to usher in double-digit growth.
Market analysts are predicting a lesser revenue period for the remaining period of the year, due to lesser demand for television as well as higher prices for the same to control inflation-induced effects. Due to growing consumer demand, there has been a significant improvement in LG’s electric vehicle components business. For new orders placed in this area, LG acquired 6.1 billion dollars. Its main consumers remain General Motors and Mercedes-Benz AG.