SEOUL, July 30 (AJP) - LG Electronics confirmed record second-quarter results on Thursday, driven by strong home appliance sales, resilient vehicle component demand and growing subscription revenue despite geopolitical uncertainties and softer consumer spending.
The South Korean electronics maker posted consolidated revenue of 23.83 trillion won ($16.52 billion) and operating profit of 1.58 trillion won ($1.09 billion) for the April-June period, up 14.9 percent and 147 percent, respectively, from a year earlier. Both figures marked the highest-ever results for a second quarter.
LG said premium home appliances, strong demand in emerging markets and continued growth in its vehicle solutions business helped offset external challenges, including the conflict in the Middle East. Higher sales of premium products, improved cost competitiveness and a one-off tariff refund related to U.S. exports also boosted profitability.
Business-to-business revenue reached 6.5 trillion won, accounting for 36 percent of companywide sales excluding LG Innotek, while subscription-based services generated 660 billion won, reflecting continued overseas expansion.
The Home Appliance Solution division posted quarterly revenue of 7.08 trillion won, surpassing the 7 trillion-won mark for the first time, with an operating margin approaching 10 percent. LG attributed the performance to strong sales of both premium and mass-market products, supply chain optimization and subscription services that continue to generate recurring revenue.
Its Vehicle Solution business recorded quarterly revenue of 3.03 trillion won and operating profit of 191.2 billion won, both record highs for a second quarter, supported by a growing order backlog and an improved product mix.
The Media Entertainment business also improved on stronger sales of OLED and QNED televisions and continued growth of its webOS platform, while the Eco Solution division benefited from robust overseas air-conditioner demand and continued investment in AI data center cooling technologies.
Looking ahead, LG said it expects demand to remain subdued in the third quarter but plans to strengthen profitability by focusing on emerging markets, expanding premium product sales and accelerating growth in businesses such as robotics and AI data center cooling solutions.
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