LG Electronics posts 13.5% rise in Q3 operating profit, breaks W4tr mark for first time

LG Electronics posted strong year-on-year earnings growth in the third quarter, driven by expanded premium product sales and solid performances from its home appliance and vehicle component businesses, even as the prolonged war in the Middle East clouded the global economic outlook.

With sales and operating profit both growing year-on-year in every quarter this year, the company's cumulative nine-month sales and operating profit surpassed 70 trillion won ($52.1 billion) and 4 trillion won, respectively, for the first time in history.

LG Electronics disclosed Wednesday that its preliminary consolidated sales for the third quarter came to 23.83 trillion won, with operating profit reaching 781.8 billion won — up 8.9 percent and 13.5 percent, respectively, from the same period a year earlier.

Core businesses maintained strong market positions while growth in Global South markets and a solid showing in business-to-business operations contributed to company-wide sales expansion.

Operating profit in particular posted double-digit growth compared with the same quarter last year, demonstrating robust earnings power. Home appliances and vehicle components served as cash cows, while the TV business — which struggled last year — significantly improved its profitability and contributed to the overall earnings recovery.

Company-wide efforts to improve cost structures, combined with operating leverage from higher sales, offset headwinds from rising logistics costs, raw material prices and fixed expenses.

LG Electronics' cumulative sales through the third quarter reached 71.38 trillion won, with operating profit at 4.03 trillion won. Both milestones — cumulative sales exceeding 70 trillion won and operating profit surpassing 4 trillion won through three quarters — were achieved for the first time this year.

The home appliance business sustained its growth momentum in the third quarter, supported by a two-track strategy spanning premium and volume-zone products, as well as expanded performance in subscription services, online channels and B2B operations.

The TV business remained in the black, buoyed by stronger sales of premium products including OLED televisions, revenue growth in emerging markets and a favorable performance from the webOS platform business.

The vehicle component business also continued its role as a B2B cash cow, as sales growth was accompanied by a higher share of premium sales in the automotive infotainment segment.

The heating, ventilation and air conditioning business recorded sales roughly in line with the previous year on the back of expanded overseas sales, though profitability edged down slightly due to investment in new businesses and the addition of new staff.

LG Electronics plans to channel profits from its core operations into investment in future growth businesses. The company is expanding production capacity at home and abroad to meet surging demand for AI data center cooling solutions. Its robotics business is also building the country's largest data factory in Yangjae, Seoul, while establishing a mass production system for actuators — key robot components — in Changwon, South Gyeongsang Province.

LG Electronics plans to release its third-quarter consolidated net profit and divisional earnings results at an investor relations conference scheduled for later this month.