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| ▲ This file photo taken April 5, 2021, shows an office building of LG Electronics Inc. in Seoul. (Yonhap) |
(LEAD) LG Electronics-Q3 earnings
(LEAD) LG Electronics Q3 profit down on weak demand
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SEOUL, Oct. 28 (Yonhap) -- LG Electronics Inc. on Friday reported a big drop in net income but record-high sales in the third quarter.
The South Korean tech company reported in a regulatory filing that its third-quarter net income came in at 336.5 billion won (US$237.1 million), down 34.8 percent from a year earlier.
Operating income for the July-September period was 746.6 billion won, up 25.1 percent from a year ago, the company said. But LG's quarterly profit, in fact, declined on-year after taking into consideration a recall provision of 480 billion won for General Motors Co.'s Bolt electric vehicles during the year-ago quarter.
Sales increased 14.1 percent to hit a record high of 21.17 trillion won, surpassing the 20 trillion-won mark for the first time in the company's history, on the back of robust sales of high-end home appliances and electric vehicle (EV) components business, it said.
Its home appliance division reported sales of 7.5 trillion won, up 5.8 percent from a year ago, with an operating profit of 228.3 billion won, which declined year-on-year due to "increased marketing investments and higher logistics costs."
LG's TV business logged an operating loss of 55.4 billion won due to bigger marketing expenses amid intensified market competition.
Its EV business reported 2.3 trillion won in sales, up 45.6 percent from a year ago, marking the business unit's highest quarterly revenue. Operating profit came in at 96.1 billion won.
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