LG Electronics operating profit for the first quarter of this year fell more than 10 per cent from a year earlier, reaching 1.33 trillion won ($984.9 million). The company cited rising costs and intensifying competition as the reasons for the decline in profit.
Sales for the first quarter increased by 3.3 per cent on-year to 21.09 trillion won, marking the highest for any first-quarter results. However, LG Electronics did not provide specific data for net income in their regulatory filing.
According to a survey by Yonhap Infomax, the company’s operating profit was in line with the average estimate. LG Electronics attributed the profit decline to higher material costs and increased market competition, despite surpassing 1 trillion won for the fifth consecutive year.
In order to overcome uncertainties in the market, LG Electronics has introduced new business methods such as subscriptions and expanded its business-to-business models. The company has also diversified its home appliance product lineups and emphasized its premium OLED TVs to drive sales during the January-March period.
LG Electronics will release its final first-quarter earnings report later this month, providing detailed numbers for each business segment. The company’s strategic focus on innovation and expansion into new business models will be crucial for future growth and success.
Stay tuned for more updates on LG Electronics’ financial performance and strategic initiatives in the coming weeks.
