LG Q1 dips
April 29, 2020
LG Electronics has announced first-quarter 2020 consolidated revenue of KRW 14.73 trillion (€11.4bn) and operating profit of KRW 1.09 trillion. Although revenue declined modestly compared with the same period last year, operating income improved 21.1 per cent from the 2019 quarter making this only the second time in history when quarterly operating profit exceeded KRW 1 trillion. The 7.4 per cent operating margin was the highest in LG’s history for a first quarter.
The LG Home Entertainment Company posted first-quarter revenues of KRW 2.97 trillion, a decrease of 4.8 per cent from the same period last year as a result of component supply constraints and slowing global demand due to lower consumer confidence. Taking into account the reclassification of information technology products from the Home Entertainment Company to the Business Solutions Company this year, operating income of KRW 325.8 billion increased 31.7 per cent from the same period last year as a result of operating efficiencies and expansion of premium products such as OLED TVs and NanoCell TVs.
With market demand affected negatively by the pandemic, the company says it is adjusting the proportion of premium products, expanding online sales, optimising resource input and streamlining asset management to improve profitability going forward.