LG Electronics Q1 Operating Profit Jumps 39.1% Highest in History

LG Electronics is one of the few tech giants around the world that has managed to anchor its services on trust through its products and services that make customers always want to be associated with them.

South Korea’s LG Electronics Inc Thursday said sales of home appliances and TVs propelled its operating profit to hit USD 1.36 billion (Ksh. 145 billion) the first three months of this year.

Its sales hit 17 billion dollars, an increase on year of nearly 28 per cent. 

“At 8.1 per cent, this is a first-quarter operating profit record for the global consumer electronics giant, reflecting strong demand for LG home appliances and home entertainment products as customers around the world continue to spend more time at home due to Covid-19 lockdowns,” the firm said in an emailed statement to Khusoko.

LG Electronics Inc.'s net profit rose 7.6% in the first quarter, driven by solid demand for televisions and home appliances.

LG Electronics announced it will exit its unprofitable smartphone business in July after failing to compete with other players, Apple Inc. and Samsung Electronics Co., among other rivals.

The South Korean consumer electronics giant says it will maintain its competitive edge in the market by expanding its market position in main businesses and increasing investment in strategic businesses. 

“Sales expected to grow significantly in the second quarter year-on-year affected by strong sales in appliance and TV on the back of the recovering demand in the global market, and increased sales in the vehicle component business,” it said.