LG Electronics has announced a remarkable 44% increase in net profit for the third quarter, primarily driven by its home-appliance and vehicle-components divisions. The South Korean consumer-electronics giant recorded a net profit of 485.20 billion Korean won ($358.5 million) for the quarter ending in September, surpassing the FactSet-compiled consensus forecast of KRW377.00 billion.
Operating profit also displayed a healthy growth of 33% year-on-year, reaching KRW996.70 billion, despite a slight 2.2% dip in revenue to KRW20.709 trillion. These figures align closely with the company’s earlier predictions.
The outstanding quarterly performance is credited to strong profits generated by LG’s core home-appliance business as well as its new growth engine – vehicle parts and solutions. Notably, operating profit from home appliances more than doubled compared to the same period last year, while the car-components segment achieved a quarterly record.
Looking ahead, LG Electronics has ambitious targets for its vehicle business. It expects the order backlog and revenue to reach KRW100 trillion and KRW10 trillion, respectively, by 2023.
These impressive results strengthen LG Electronics’ position as a leading player in the consumer-electronics industry.