LG’s financial report from the third quarter of 2019 – the best third quarter, mobile losses continue
LG increased revenue and profit in this quarter due to its strong performance And the works of household appliances, home entertainment and business solutions are related, and the reduction of the loss in the mobile communication sector is not affected by it.
Next, we will examine the performance of the five parts of LG in the third quarter of 2019.
– LG Mobile Communications Company
LG’s mobile communications department has not seen profitability for a long time, and the third quarter of this year is no exception in this regard. During the past few months, LG’s mobile division has focused more on the middle range of the market and a few models in the K and Q series, including LG Q70 has been released to the market. The latest product of this company, G8X. It is called ThinQ, which was introduced at the IFA 2019 exhibition and after a while it was released to the South Korean market under the name of V50S ThinQ. The company’s sales in the third quarter of 2019 reached 1.52 trillion won ($1.27 billion), which is a decrease of more than 25 percent compared to 2.04 trillion won last year. The operating loss of this company is 161.2 billion won ($135 million), which according to LG, its reduction is related to product productivity and cost improvement.
– LG home appliances and air conditioning solutions company
The highest sales and revenue among the LG subsidiary companies occurred in Home Appliances and Air Conditioning Solutions Company, where it sold 5.33 trillion won (4.46 billion dollar) the sales record of this collection was broken in the third quarter as well and there was a nearly 10% increase compared to the same time last year. According to LG, the success of this series is the result of the company’s strong performance in the North American, European, Asian and Middle Eastern markets. The operating profit of this complex is 428.9 billion won (359.2 million dollars), which is a 3.8% annual increase. Among the reasons for the increase in the profit of this collection, the combination of improved sales, continuous reduction of costs and reduction of the cost of raw materials have been pointed out.
– LG home entertainment company
The second The source of LG’s income is the home entertainment company LG Home Entertainment Company managed to earn 3.87 trillion won ($3.24 billion) in the third quarter of 2019, which faced a strong performance in the Latin American and Middle East markets with an increase of 3.5 percent compared to last year. . Of course, the operating profit of this group decreased slightly compared to the same time in 2018 and reached 318 billion won ($266.3 billion), which LG attributes to the fierce competition in the market and the weak exchange rate. Of course, the strong sales of advanced products such as OLED TVs have improved the company’s conditions to the extent that its operating profit margin reaches 8.2% in this quarter.
– LG Automotive Components Solutions Company
LG in the component solutions company Khodro or Vehicle Component Solutions Company recorded an income equal to 1.34 trillion won ($1.12 billion) in the third quarter of 2019, which grew by 14% based on the high sales of car multimedia systems (infotainment systems), the second highest increase in income among the companies in the group. LG is considered. Of course, this complex has not been successful in making profit and has registered an operating loss of 60.1 billion Vani (50.3 million dollars) in this period. LG attributes this operating loss to increased costs associated with installing mass production equipment for new projects.
– LG Business Solutions Inc
Collection Business solutions or LG Business Solutions Company achieved a revenue of 698.7 billion won ($585.2 million) in the third quarter of 2019 compared to the previous year due to increased sales of information displays and solar panels in key markets with An increase of 21.2 has been encountered. The operating profit of this group has also been announced as 66.8 billion won ($55.9 million), which with an annual increase of 90%, is the record holder of the highest positive change in profit among all LG sub-groups.
At the end, it should be noted that the conversion rate of each US dollar in LG’s recent report is equal to 1,194 South Korean won (KRW).