SEOUL, July 07 (AJP) - LG Electronics reported a 46.6 percent decline in second-quarter operating profit to 639.1 billion won ($491 million) as the South Korean appliance maker faced headwinds from the United States tariffs and weakened demand for televisions and IT products.
Revenue fell 4.4 percent year-on-year to 20.74 trillion won in the April-June period, the company said in a preliminary earnings statement on Monday. The results reflect challenging operating conditions, including tariff burdens from US trade policies and increased logistics costs that weighed on profitability across multiple business segments.
LG's home appliance division and business-to-business operations, including automotive components and air conditioning systems, maintained relatively stable performance despite the difficult environment. However, the company's media and entertainment unit, which includes TV and IT products, struggled with demand contraction and rising LCD panel prices that pressured margins.
The electronics giant said it expects logistics cost burdens to ease in the second half compared to the same period last year. LG plans to focus on what it calls "qualitative growth" areas, including B2B operations, subscription services, webOS platform development, and direct-to-consumer sales through its LGE.com platform to maintain business fundamentals.
LG's automotive components business continued to grow based on a stable order backlog, with operating profit increasing year-on-year through improved operational efficiency. The company also plans to accelerate its push into AI data center cooling solutions and European air-to-water heat pump markets following its recent acquisition agreement with Norwegian water heating company OSO.
reporter
Candice Kim
candicekim1121@ajupress.com
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