Seoul, April 7: LG Electronics announced on Tuesday that its operating profit for the first quarter has surged by 33% compared to last year, driven by robust performance in its home appliance sector.
The company revealed in a regulatory filing that operating profit rose from 1.25 trillion won to 1.67 trillion won (approximately $1.1 billion) during this period.
Sales also saw a 4.4% increase, reaching 23.73 trillion won, marking the highest level for the first quarter to date.
Net profit figures have not yet been disclosed, with the company set to release its final earnings report at the end of this month.
In the previous quarter (Q4), LG Electronics faced an operating loss of 109 billion won due to weak demand and one-time expenses related to its restructuring program.
The company stated that its home appliance solutions division maintained strong growth by enhancing its subscription business and focusing on premium products.
The media and entertainment business has also bounced back from last quarter’s losses, aided by the company’s cost-cutting efforts.
Additionally, the vehicle solutions business showed improved profitability compared to last year, although detailed figures were not provided. The depreciation of the South Korean won also benefited this segment, as most of its customers are located overseas.
However, the eco solutions business experienced a decline in sales and profits due to market uncertainties. The company indicated it would focus on meeting demand related to artificial intelligence (AI) data centers.
To address rising raw material costs for the remainder of 2026, the company plans to continue its cost-cutting measures.
Furthermore, LG Electronics aims to increase its focus on future growth engines such as home robots and associated devices.
In a statement, the company noted, “Amid factors such as conflict in the Middle East, global economic instability, and rising costs of raw materials and logistics, LG Electronics plans to take flexible and preemptive measures to mitigate these impacts.”
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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