LG announces first-quarter 2020 financial results

May 05,2020 - Last updated at May 05,2020

LG Electronics Inc. (LG) on Tuesday announced first-quarter 2020 consolidated revenue of KRW 14.73 trillion ($12.45 billion) and operating profit of KRW 1.09 trillion ($921.47 million).

Although revenue declined modestly compared with the same period last year, operating income improved 21.1 per cent from the 2019 quarter, making this only the second time in history when quarterly operating profit exceeded KRW 1 trillion. The 7.4 per cent operating margin was the highest in LG’s history for a first quarter.

The LG Home Appliance & Air Solution Company reported first-quarter revenues of KRW 5.42 trillion ($4.58 billion) and operating profit of KRW 753.5 billion ($636.8 million).

The LG Home Entertainment Company posted first-quarter revenues of KRW 2.97 trillion ($2.51 billion), a decrease of 4.8 per cent from the same period last year as a result of component supply constraints and slowing global demand due to lower consumer confidence.

The LG Mobile Communications Company reported first-quarter sales of KRW 998.6 billion ($843.9 million), narrowing its operating loss to KRW 237.8 billion ($200.96 million) from the previous quarter.

The LG Vehicle Component Solutions Company recorded first-quarter revenues of KRW 1.32 trillion ($1.11 billion), a 2.1 per cent decline from the same period last year, with an operating loss of KRW 96.8 billion ($81.8 million) as a result of the business disruption of North American and European automakers.

To minimise ongoing pandemic risk, the company will accelerate its supply chain optimisation efforts, taking into consideration a reduction in demand from automakers, and continue to improve its business structure with further cost savings in the second quarter.

The LG Business Solutions Company generated first-quarter sales of KRW 1.71 trillion ($1.44 billion), an increase of 3.5 per cent year-on-year and 18.8 per cent higher than the previous quarter thanks to increased sales of solar modules and IT products such as LG gram notebooks.

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