LG Electronics posts an operating profit of $1.56 billion in the first quarter of 2022


LG Electronics announced first quarter 2022 consolidated sales of $17.53 billion, the highest quarterly revenue in company history.

The LG operating profit $1.56 billion was positively impacted in the quarter by royalty income, partially offset by a one-time workforce restructuring cost.

Compared to the first quarter of 2021, revenue grew 18.5% and profitability advanced 6.4%, reflecting strong demand for LG home appliances as consumers around the world continue to focus on healthier living, efficiency energy and home improvements, the company said.

Sales of the vehicle components business unit increased, driven by higher demand for auto parts as a result of a proactive and preventive response to the shortage of automotive semiconductors.

The division LG Home Appliance & Air Solution Company generated first-quarter sales of $6.62 billion, with operating profit of $371.68 million. Sales increased 18.8% from the same quarter last year, posting the highest quarterly revenue for the business unit.

Steady growth was driven by performance in premium appliances and new categories, such as steam technology applied hygiene products. The home appliance business expects to see continued growth by expanding overseas sales in new home appliance categories.

LG Home Entertainment Company recorded sales of 3,380 million dollars, with an operating profit of 156.44 million dollars. Sales increased 1.4% from the same period a year earlier, driven by continued demand for premium products, including OLEDs and big-screen TVs in Europe and North America.

The business unit expects continued growth by expanding sales of premium TVs, including LG’s Oled TVs, QNED TVs and big screen TVs.

The business LG Vehicle Component Solutions Company achieved first-quarter sales of $1.56 billion. The 8.5% sales increase over the same period last year reflected a preemptive response to a shortage of automotive semiconductors.

The business unit’s first-quarter operating loss is shrinking to $5.23 million, and the company has implemented more efficient cost management to improve profitability.

The division LG Business Solutions Company saw first-quarter revenue improvement of $1.67 billion, up 23.7% from a year earlier, largely due to continued demand for products such as monitors and PC products at the start of the school season and the recovery of the B2B segment, while product competitiveness and operational efficiency also improved.

LG Electronics is a global provider of technology and consumer electronics with a presence in nearly every market and an international workforce of more than 75,000 people. LG’s combined sales generated global revenue of more than $63 billion in 2021.

With information from Nicholas Lucas.



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