LG net profits down 38.1% to 65.6-B won as 5 divisions suffer earnings decline

LG Electronics Inc. posted a net profit of 65.6 billion won in the second quarter, down 38.1 percent from last year as it suffered earnings declines in all of its five business divisions due to the fallout from the pandemic.

Operating profit was down 24.1 percent on-year to 495.4 billion won as sales dropped 17.9 percent on-year to 12.8 trillion won in the second quarter.

Its operating income also dipped 54.6 percent while sales dropped 12.9 percent from the first quarter.

The company expects a gradual recovery in its home appliance business during the current quarter, adding that its third-quarter performance is forecasted to be the same as last year when it registered 15.7 trillion won in sales and 781.5 billion won in operating profit.

Its Home Appliance & Air Solution (H&A) unit's revenue declined down 15.5 percent for the second quarter to 5.16 trillion won in the second quarter, while operating income plunged 12.5 percent on-year to 628 billion.

However, its home appliance business's operating margin reached a record high of 12.2 percent for the second quarter.

Sales of LG's Home Entertainment division, which manages the TV business, fell 24.4 percent on-year to 2.26 trillion won while its operating profit declines 25.9 percent on-year to 112.8 billion won.

LG's Mobile Communications division revenue declined 18.9 percent on-year to 1.31 trillion won,

LG's Vehicle Component Solutions unit suffered a second-quarter sales plunge of 35.9 percent on-year to 912.2 billion won, and its operating loss worsening from 55.7 billion won to 202.5 billion won.

In its business solutions division, both LG's 1.3 trillion won in revenue, and 98.3 billion won in operating profit decreased from last year's.