SEOUL, October 13 (AJP) - South Korea’s top consumer goods maker LG Electronics posted stronger-than-expected third-quarter earnings on Monday, driven by record automotive electronics sales, setting the stage for its Indian unit’s stock market debut on a buoyant note.
According to its preliminary earnings release on Wednesday, the home appliance and consumer goods giant reported an operating profit of 688.9 billion won ($515 million) for the July–September period, surpassing the market consensus of 605 billion won. Revenue came to 21.88 trillion won, down 1.4 percent from a year earlier but up 5.5 percent from the previous quarter.
Operating profit fell 8.4 percent on year, weighed by U.S. tariffs and restructuring costs, yet exceeded forecasts thanks to strong vehicle component sales and stable appliance performance.
Shares of LG Electronics rose 2.53 percent to 81,000 won in Seoul trading Monday following the results.
The upbeat earnings come as the company’s Indian subsidiary prepares to debut on the Bombay Stock Exchange on Tuesday through a $1.3 billion initial public offering expected to value the unit at up to $8.7 billion. The 71.3 million-share offering was fully subscribed on the first day, drawing anchor investors including sovereign wealth funds from Abu Dhabi, Norway, and Singapore, along with asset managers such as BlackRock.
India, with its 1.4 billion population and low household appliance penetration, is viewed as one of LG’s key growth markets. The company operates two factories there and is building a third at Sri City.
The vehicle component division was the standout performer, recording its highest quarterly profitability on the back of rising demand for premium infotainment systems as the business pivots from hardware to automotive content platforms.
The home appliance division maintained its premium leadership while expanding subscription-based services to offset pricing pressures amid weak global demand.
The media and entertainment unit, however, booked one-time costs tied to a voluntary retirement program and higher marketing expenses in a fiercely competitive TV market. LG said increased U.S. tariffs also dented profitability but that it is optimizing production and expanding direct-to-consumer online sales to mitigate the impact.
Meanwhile, the HVAC business secured multiple large-scale contracts for AI data center cooling systems across major regions and is accelerating commercialization of liquid cooling technology, viewed as essential for next-generation AI infrastructure.
LG Electronics will release detailed divisional results and net income on October 31.
reporter
Candice Kim
candicekim1121@ajupress.com
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