LG records highest Q2 revenue in company’s history: All the details – Times of India

South Korea-based tech giant LG has announced its second-quarter 2023 earning results. The company reported consolidated revenue of $15.6 billion with an operating profit of $579 million. LG recorded the highest second-quarter revenues in the company’s history. The company claimed that the record-breaking second-quarter results were due to its strategy to drive continuous growth while strengthening its business competitiveness.The revenue also reflects the company’s actions to improve its business structure by pursuing new platform-based service businesses and expanding the business-to-business (B2B) segments. However, the operating profit was 6.3% lower than the second quarter of 2022.

The company plans to drive profitability improvements further by optimising efficiencies and by meeting market demands through enhanced demand forecasting and manufacturing competitiveness. LG also plans to strengthen its online brand store and direct-to-consumer businesses.
How LG’s business units performed

LG’s Home Appliance & Air Solution uni generated second-quarter revenue of $6.2 billion and an operating profit of $468 million. Despite intensified market conditions, the business unit recorded strong profitability on the back of increased sales of high-demand products such as air conditioners and energy-efficient heat pump-enabled products. The operating profit increased by 40% from the previous year, reflecting efficient cost structure management. LG also plans to leverage its high-efficiency innovations including heat pumps and ESS as demand for green technologies grows in Europe, North America and other parts of the world. At the same time, the company sees the electrification trend as an opportunity for future growth in the HVAC business. In the third quarter, the company will launch new LG ThinQ UP 2.0 home appliances featuring personalisation features, subscriptions and services. The company has also promised to expand certain mass-tier appliance lineups in response to market changes. LG is also aiming to lead a paradigm shift in the home appliance industry by combining service-based business models with differentiated product competitiveness while continuing efforts to increase efficiencies in production, purchasing and logistics for stable profitability.
LG Home Entertainment unit recorded second-quarter revenue of $2.4 billion and an operating profit of $96 million. The company continues to focus on improving operational efficiency and improving profitability by growing the content and service businesses based on LG’s webOS smart TV platform. The company intends to transform its TV business portfolio into a “media and entertainment service provider” by expanding content, services and advertising in differentiated products. The business unit also intends to solidify LG’s leadership in the ultra-large-screen TV market with the launch of the 97-inch LG Signature OLED M, the world’s first “wireless” consumer TV with Zero Connect technology. Also driving the premium TV market are expanded sales of the company’s popular new Lifestyle Screens.

LG Vehicle component solutions unit’s second-quarter revenue was $2.07 billion, which was the highest second-quarter revenue in the division’s history. However, an operating profit was restricted to $70 million excluding non-recurring expenses such as one-off provisions, achieving the highest second-quarter operating profit in terms of business performance. But after the company’s operating profit margin included the one-time provision of $117 million, related to General Motors’ recall of the Chevy Bolt EV, it resulted in an operating loss of $47 million. This provision reflects the increases in material costs that occurred during the recall period.
The LG Business Solutions unit saw improved second-quarter revenues of $1.03 billion with an operating profit of $2.03 million. Both revenue and operating profit declined slightly from the same period last year due to the persistent softening of demand for IT products. From the third quarter, demand for IT products is expected to show a gradual recovery compared to the first half. In the midst of this, LG plans to actively expand sales of monitors and laptops equipped with gaming features and OLED displays. In the commercial display business, the company will seek opportunities for further growth with customized solutions for various vertical markets, from hospitality and health care to education, retail and corporate.