LG Electronics expects best-ever quarterly earnings in Q1

LG Electronics announced on the 7th that it posted sales of 18 trillion and 805.7 billion won and an operating profit of 1.5178 billion won in the first quarter. Sales and operating profit increased 27.7% and 39.2% from the same period last year, respectively. All of them are the highest in the first quarter.

Operating profit recorded an earnings surprise that exceeded the market consensus of 1.2 trillion won by 26%. Sales are also higher than the consensus of 17.8 trillion won.

Home appliances and TVs led the first-quarter results. Consumer electronics and TV sales increased due to the spread of non-face-to-face and zip-cock culture following the continuation of COVID 19.

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The H&A (Home Appliance & Air Solution) division, which produces household appliances, has sales in the mid-6 trillion won range and operating profit in the late 800 billion won to the low 900 billion won at stock prices.

The home entertainment (HE) division, which is in charge of the TV business, is expected to have sales in the high half of 3 trillion won and an operating profit of 300 billion won. Sales in the first quarter are expected to increase from the same period last year due to increased sales of premium products such as organic light-emitting diodes (OLED) and nano cell TVs.

The Mobile Communications (MC) division, which produces mobile phones, has a strong deficit for 24 consecutive quarters until the first quarter. LG Electronics announced at the board meeting on the 5th that it will withdraw from the mobile phone business, which recorded a cumulative loss of 5 trillion won and produce mobile phones by July 31.

LG Electronics plans to announce its consolidated net profit and earnings by division at the earnings presentation at the end of this month.

|Via|