LG Electronics announced its preliminary results for the second quarter, achieving the highest-ever revenue and the second-highest operating profit among all second quarters. Despite the global economic slowdown, the company's efforts to enhance its business portfolio and pursue qualitative growth have yielded visible results.
According to the consolidated results, LG Electronics recorded revenue of KRW 19.9988 trillion and operating profit of KRW 8.927 billion in the second quarter. In terms of revenue, the company achieved a historical high by expanding the proportion of business-to-business (B2B) transactions in its business structure. This achievement holds significant meaning considering the delayed demand recovery due to the global economic slowdown and intensified market competition.
The operating profit also increased significantly (12.7%) compared to the same period last year, thanks to the accelerated qualitative growth of the business. The visible results were attributed to the company's efforts to improve the fundamental nature of its operations, such as the establishment of a War Room and other tasks. Taking into account the inclusion of non-operating costs related to personnel structure optimization (voluntary retirement, etc.) in the preliminary results for the second quarter, the operating profit based on business performance exceeds market expectations.
Looking at the first-half results, which combine the revenue and operating profit of the previous quarter, the revenue ranks second, and the operating profit ranks third among all first halves. LG Electronics surpassed KRW 40 trillion in revenue for the second consecutive year and exceeded KRW 2 trillion in operating profit for the third consecutive year.
Home appliances greatly contributed to the solid performance with their globally competitive manufacturing capabilities. Particularly, amid the ongoing heatwave and monsoon season, sales of dehumidifiers and air conditioners increased due to the growing demand for high-efficiency products. Dehumidifier sales in the first half of this year more than doubled compared to the same period last year. In addition to stand-type and wall-mounted residential air conditioners, LG's competitive products in various forms, such as window-mounted and portable air conditioners, effectively responded to the diversified customer demand. Sales of window-mounted air conditioners increased by over 40% compared to the same period last year.
The growth of competitive products in the B2B air conditioning business also continued. The system air conditioners achieved double-digit revenue growth compared to the same period last year. As energy regulations are being strengthened, particularly in advanced markets such as Europe, the demand for high-efficiency and environmentally friendly products like heat pumps is rapidly increasing.
Despite the prolonged global demand slump, the TV business continued to experience meaningful growth through the webOS content and services. The introduction of new products such as the innovative lifestyle screen "LG StandbyMe Go" has received positive responses.
The automotive components business maintained rapid growth through a high order backlog and stable supply chain management. LG Electronics' stable business portfolio, which revolves around three major axes: infotainment, electric vehicle components, and lamps, is another advantage. The business solution division is also expanding into various spaces, such as introducing hotel TVs equipped with Apple AirPlay, leading the industry with diverse customer experience enhancements.
The preliminary results for the second quarter announced are based on the Korean International Financial Reporting Standards (K-IFRS). LG Electronics plans to announce the net profit based on consolidated results and the performance of each business unit at an earnings conference scheduled at the end of this month.
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