LG sales and profits hit record high

Thanks to home appliances, air solutions.

Home appliances, air solutions and premium home entertainment products have helped take LG Electronics sales and profits to a record high. The Korean group reported consolidated global sales of US$ 13.9 billion and an operating profit of US$ 715.1 million for the 2018 second-quarter. Sales rose 3.2% while operating profits increased 16.1% from the same period last year.

First-half revenues for LG home appliances and air solutions were the highest in company history, reaching US$9.47 billion. Revenue from home entertainment increased 4.1% from the 2017 quarter due to healthy sales of LG OLED and Super UHD TVs and other premium products with sales of US$3.54 billion. LG said the global TV market is expected to see weaker demand primarily due to the economic downturn in Latin America, the Middle East and Africa.

However, quarterly sales for mobile communications declined following slower growth of the global smartphone market and a decline in mid to low-end smartphone sales in Latin America. A second-quarter operating loss of US$171.95 million was largely due to contracting sales and increased marketing investments to support new flagship smartphone launches. With competition in the premium smartphone category expected to intensify and growth to remain stagnant in the second-half, the company will seek to further improve its business structure and increase sales of the premium LG G7 ThinQ and LG V35 ThinQ flagship smartphones in key global markets.

In a statement LG said in light of uncertainties surrounding market conditions, competition and the international trade landscape going forward, the company enters the second half with an intense focus on cost competitiveness and profitable growth. 

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