Seoul: LG Electronics Inc. announced that its first-quarter operating profit soared by 33 percent compared to the previous year, driven by robust performance in its home appliance sector. The operating profit for the January to March period reached 1.67 trillion won (approximately US$1.1 billion), up from 1.25 trillion won during the same period last year, as detailed in a recent regulatory filing by the company. Sales also saw a significant rise, increasing by 4.4 percent to 23.73 trillion won, marking a record high for the first quarter. However, net profit data is yet to be disclosed, with the final earnings report expected later this month.
According to Yonhap News Agency, LG Electronics experienced an operating loss of 109 billion won in the fourth quarter, primarily attributed to weak market demand and one-off restructuring costs. Despite this setback, the company reported that its home appliance solution division sustained growth by enhancing its subscription services and concentrating on premium products. Additionally, the media and entertainment solution business rebounded from a previous loss, attributed to the company's strategic cost-cutting initiatives.
The vehicle solution division showed improved profitability compared to the previous year, although specific details were not provided. The recent depreciation of the Korean won against the US dollar positively impacted this segment, as most clients are based overseas. Conversely, the eco solution business faced a downturn in sales and operating profit amid market uncertainties, but the company remains committed to pursuing demand connected to artificial intelligence (AI) data centers.
Looking ahead to the rest of 2026, LG Electronics plans to continue its cost-cutting measures to mitigate the effects of rising raw material prices. The company is also focused on nurturing future growth opportunities, particularly in the field of home robots and associated accessories. In light of geopolitical tensions, macroeconomic instability, and escalating logistics costs, LG Electronics aims to minimize impacts through flexible and proactive strategies, as stated in a company release.