LG Electronics posts 65% higher profit in Q2

LG Electronics said on Wednesday that it has recorded 17.11 trillion won in sales in the second quarter, its highest figure to date.

Meanwhile, operating profit increased 65.5% year-on-year to 1.11 trillion won.

The figure matches that of South Korean analysts’ consensus of 17.2 trillion won in sales and 1.14 trillion won in operating income.

They said the company saw high demand for appliances such as air conditioners due to seasonality, while premium TV sales also increased due to outbreaks of COVID-19 across the world.

OLED TV shipment is though to have reached up to 940,000 units in the second quarter by some analysts.

The TV business likely performed better than expected while other businesses were slightly burdened by increased cost of components and materials due to the current ship shortage, they said.

LG’s home appliance business is expected to have contributed around 750 billion won in operating income, while the TV business put in 250 billion won. 

The firm’s vehicle solution business is though to have recorded an operating loss of close to 70 billion won due to the chip shortage, however.

LG is expected to record strong performances in the second half of the year as well from easing of the chip shortage and continued sales of its premium appliances. South Korean analysts currently expect the company to record 71.15 trillion won in sales and 4.58 trillion won in operating income for the entire year of 2021, which will be around 12% to 43% increase respectively from 2020.

The company is looking to end its mobile business by the end of this month.

LG’s full earnings report will come out later this month.