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LG Electronics Reports Strong Q1 Revenues Amid Economic Challenges

Source: LG Electronics

LG Electronics Inc. (LG) reported robust sales of KRW 20.4 trillion in the first quarter of 2023, its second-highest Q1 sales, and operating profit of KRW 1.5 trillion, the third-highest Q1 profitability in the company's history.

These record sales demonstrate LG's ability to improve its business structure and operational efficiency amid the challenging global economic conditions.

The company's business structure has evolved significantly, with continued expansion in the B2B segment and significant growth in non-hardware businesses such as content and services.

LG Home Appliance & Air Solution Company posted Q1 sales of KRW 8.02 trillion and operating profit of KRW 1.02 trillion, the highest ever Q1 sales.

The rapid expansion of the B2B segment, sales of energy-efficient heat pump-enabled products, and energy storage systems contributed to the continued growth.

LG's industry-leading Heating, Ventilation, and Air Conditioning (HVAC) solutions meet the latest European market trends based on stricter environmental regulations.

LG will focus on maintaining the competitiveness of its premium appliances, strengthening its mass-market appliances, managing cost structures, and improving profitability.

LG Home Entertainment Company posted sales of KRW 3.36 trillion and operating income of KRW 200.3 billion in the first quarter.

Profitability improved due to effective operating cost management and improved demand forecasting.

Despite lower global demand for TVs, LG recorded increased sales in content and services businesses based on its webOS smart TV platform.

In addition, the company plans to launch premium 2023 products, including LG OLED evo TV models, and expand its global "lifestyle screen" lineup.

LG Vehicle Component Solutions Company reported Q1 sales of KRW 2.39 trillion and an operating profit of KRW 54 billion, its highest-ever Q1 sales.

The value of accumulated orders for auto parts reached KRW 80 trillion, driven by efforts to strengthen the global supply chain.

As the demand for electric vehicles grows, LG aims to maintain its competitive edge with a stable portfolio of in-vehicle infotainment systems, e-powertrain, headlights, and distinctive solutions.

Finally, LG Business Solutions Company posted improved sales of KRW 1.48 trillion and an operating profit of KRW 65.7 billion in the first quarter.

The company plans to expand its information display business, develop customized solutions, and identify potential customer demand.

In addition, LG will accelerate the development of new businesses by integrating robots and electric vehicle chargers into its production systems in South Korea.