LG Electronics Inc. (LG) achieved a third-quarter 2024 revenue of KRW 22.18 trillion, which, according to the company is its highest revenue for any third quarter. Operating profit for the quarter reached KRW 751.9 billion, ranking as the fourth-largest quarterly operating profit in the company’s history.
Despite challenges such as rising shipping costs and global geopolitical tensions impacting costs, LG saw year-over-year revenue growth for the fourth consecutive quarter. The company attributed this growth to adjustments in business strategy, including expanding business-to-business (B2B) operations and adopting new business models.
“These steps helped counterbalance rising costs and sustain solid operating profit,” LG said in a media advisory.
In the coming months, LG plans to continue expanding its offerings, especially in home appliances. The company wants to expand its home appliance lineup, boost its direct-to-consumer (D2C) channels, and increase its presence in the B2B sector. LG is also exploring platform-based content services to support this growth.
Business units
Breaking down LG’s performance by segment, its Home Appliance & Air Solution Company recorded KRW 8.34 trillion in revenue and KRW 527.2 billion in operating profit, with an 11.7% revenue increase from last year. LG’s focus on the subscription model and B2B HVAC solutions helped drive this growth, even as global demand for appliances softened.
In the home entertainment division, LG reported KRW 3.75 trillion in revenue and KRW 49.4 billion in operating profit, partly due to rising TV shipments in Europe. LG’s webOS platform also continued to attract new users, which helped offset some of the cost pressures from increased LCD prices.
The vehicle components division saw third-quarter revenue of KRW 2.61 trillion, though its operating profit slipped due to increased R&D expenses in preparation for software-defined vehicles. LG plans to lean on its established order backlog to support future sales growth in this sector.
LG’s business solutions division, which focuses on gaming monitors, LED signage, and AI PC technology, posted KRW 1.4 trillion in revenue, though the segment faced an operating loss driven by rising costs and competition. However, LG expects demand in this segment to grow, particularly for premium laptops and gaming monitors, as interest in AI technology intensifies.
In other developments, LG’s recent decision to exit the battery pack business will result in changes to its financial reporting, with related earnings now categorized as discontinued operations.