LG Electronics’ operating profit through Q3 tops 4 trillion won... Home appliances and vehicle components drive growth (Roundup)

[Financial News] LG Electronics’ cumulative operating profit through the third quarter of this year topped 4 trillion won. This is the first time its cumulative operating profit through the third quarter has exceeded 4 trillion won. The increase is attributed to continued solid growth in home appliances and vehicle components, as well as improved performance in its TV business. Building on its strengths in its core businesses, LG Electronics plans to expand new businesses, including fast-growing AI data center cooling solutions and robotics, and develop them into future growth drivers.

LG Electronics said on the 28th that, on a consolidated basis, it posted revenue of 23.8241 trillion won and operating profit of 781.9 billion won in the third quarter of this year. The figures were up 8.9% and 13.5%, respectively, from the same period last year. Its operating margin came to 3.3%. Cumulative revenue through the third quarter of this year was 71.3778 trillion won, up 9.2% year over year. Cumulative operating profit rose 55.9% to 4.0347 trillion won.
LG Electronics said all of its business divisions posted profits despite continued external uncertainties, including the war in the Middle East.
The Home Appliance Solution Division (HS Division), which oversees home appliances, posted third-quarter revenue of 7.0444 trillion won and operating profit of 259.2 billion won. Its two-track strategy of targeting both the premium segment and the mid- to low-priced market helped it exceed 7 trillion won in revenue for the second consecutive quarter. In a conference call on its earnings results that day, LG Electronics said, “LCD TV and monitor panel prices will remain slightly firm in the fourth quarter, affected by rising manufacturing costs and production cuts, and upward price pressures will intensify further in the first quarter of next year.” It added, “We plan to step up cost-reduction efforts, including optimizing component specifications and diversifying suppliers, continue to expand sales of premium products, and operate optimally in response to market conditions.”
The Vehicle Solution Business Division (VS), which oversees the vehicle components business, posted revenue of 2.8261 trillion won and operating profit of 190.3 billion won. Both figures were the highest ever for a third quarter.
The MS Business Division, which oversees the TV business, posted revenue of 5.0215 trillion won and operating profit of 146.7 billion won. The ES Business Division, which oversees the heating, ventilation and air conditioning business, posted revenue of 2.1736 trillion won and operating profit of 87.2 billion won.
Business-to-business (B2B) and subscription businesses also continued to grow. Third-quarter B2B revenue was 6.1 trillion won, up 3.4% from the same period last year. Revenue from subscription businesses, which include products and services, rose 8.6% to 760 billion won.

LG Electronics plans to accelerate the expansion of new businesses, including AI data center cooling solutions and robotics.
Cumulative orders for the AI data center cooling solutions business through the third quarter topped 3 trillion won, a substantial increase from about 600 billion won in the first half. LG Electronics is investing an additional 220 billion won to expand production capacity at home and abroad, including securing a production base in the United States. In this regard, LG Electronics said, “We are investing about 220 billion won to establish a new local production base with a floor area of 32,000 square meters in Virginia, where AI data centers are concentrated, next year, and to build new production lines in Pyeongtaek and Changwon.”
In its robotics business, LG Electronics will begin full-scale operations at Korea’s largest data factory during the fourth quarter. The company plans to make it a starting point for improving the performance of its robot foundation models and a hub for collaboration with partners, including NVIDIA Corporation. It also plans to expand its home humanoid business in 2030, when the consumer humanoid robot market is expected to take off.
LG Electronics plans to expand its B2B, subscription and online businesses in the fourth quarter while securing profitability through supply chain diversification and improved operational efficiency. It also plans to cancel all 730,000 shares it repurchased this year during the fourth quarter.



[email protected] Park So-hyun Reporter