RIYADH: LG Electronics (LG), a leading global technology company, has posted a revenue of $12.70 billion for the first quarter (Q1) of this year, an increase of 9.7 per cent from the same period last year. LG nearly doubled its operating income to $798.3 million with the Home Appliance & Air Solutions Company posting its highest quarterly operating income in eight years, said a statement from LG. LG Home Appliance & Air Solution Company reported a 10 per cent increase in first-quarter sales from the same period a year earlier and 15 per cent higher than the previous quarter, it said. Revenues of $4.02 billion reflected strong performance in Asia and Latin America. Domestic sales were 33 per cent higher year-over-year due to strong performance by TwinWash washing machines, air conditioners and some refrigerators, as well as the company’s newest premium LG Styler clothes management system and air purifiers, it added. As the company enters the peak season, LG foresees an improvement in the business environment across much of Asia and Latin America, two key growth markets, said a statement. LG Home Entertainment Company recorded its highest first-quarter operating margin of 8.8 per cent on sales of $3.75 billion, largely due to expanding sales of premium products, improved cost structure and a more flexible strategy to deal with the increase in panel prices, it said.
The company expects TV demand in the next quarter to remain positive due to opportunities in North America, Latin America and Asia, led by the growing popularity of premium LG OLED and Ultra HD TV products and the rollout of the new LG Signature OLED TV W. LG Mobile Communications Company reported revenues of $2.61 billion, an increase of 4 per cent quarter-over-quarter and 2 percent year-over-year, driven by the launch of the flagship LG G6 smartphone and new mass-tier models, it stated. The company reported smartphone shipments of 14.8 million units this quarter, up 10 per cent from the first quarter of last year in large part due to the Americas. While effects of last year’s reorganization are beginning to bear fruit, price competition in the mass-tier segment and competition from other flagship models are expected to increase this year.
LG Vehicle Components Company reported strong sales of $759.2 million, a 48 per cent increase from the first quarter of 2016 thanks in large part to the successful collaboration with General Motors on the popular Bolt electronic vehicle. Continued investments in R&D and growth are expected to continue to affect profitability this year. LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending March 31, it added.
