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LG Electronics reported third-quarter consolidated revenue of KRW 23.82 trillion and operating profit of KRW 781.9 billion. Cumulative operating profit for the first three quarters rose 55.9 per cent from a year earlier.
For the first nine months, consolidated revenue reached KRW 71.38 trillion, up 9.2 per cent year on year, while operating profit totalled KRW 4.03 trillion. All four main business units remained profitable during the period.
Home appliances, vehicle systems and televisions were the main contributors to stronger earnings. Subscription revenue, including product subscriptions and maintenance services, rose 8.6 per cent year on year to KRW 760 billion in the quarter, while business-to-business revenue increased 3.4 per cent to KRW 6.1 trillion.
Business units
The Home Appliance Solution division posted revenue of KRW 7.04 trillion and operating profit of KRW 259.2 billion, marking the second consecutive quarter with revenue above KRW 7 trillion.
LG said the performance reflected sales across both premium and higher-volume product segments. The division remained profitable despite higher logistics and marketing costs.
The Media Entertainment Solution business reported revenue of KRW 5.02 trillion and operating profit of KRW 146.7 billion. Both improved significantly from a year earlier, helped by higher OLED television sales and stronger demand in emerging markets.
The Vehicle Solution unit recorded revenue of KRW 2.83 trillion and operating profit of KRW 190.3 billion, its highest third-quarter figures on record. LG attributed the result to the conversion of existing orders into sales and growth in in-vehicle infotainment.
The Eco Solution business reported revenue of KRW 2.17 trillion and operating profit of KRW 87.2 billion. Overseas commercial heating, ventilation and air conditioning markets drove sales, although profitability was affected by spending to expand capacity.
New areas
Beyond its established divisions, LG highlighted growth in newer business areas. Cumulative orders for AI data centre cooling systems surpassed KRW 3 trillion by the end of the third quarter, up from about KRW 600 billion at the end of the first half.
LG is investing an additional KRW 220 billion to upgrade production sites and increase output, including at a manufacturing base in the United States near major AI data centre clusters. In robotics, partial operations have begun at its Data Factory, which LG described as Korea's largest robotics data factory.
Preparations for mass-production infrastructure for actuators are continuing, while LG also seeks orders from prospective global robotics customers. In AI home systems, it plans to work with global technology companies on an ecosystem based on internet of things technologies.
Market backdrop
LG said the latest results came despite geopolitical uncertainty and softer demand in several end markets. It expects any recovery in home appliances and automotive demand to remain limited in the fourth quarter, while television demand is projected to fall from a year earlier as oil prices and interest rates weigh on consumer sentiment.
In the current quarter, LG will focus on business-to-business, subscription and online sales, while seeking to diversify its supply chain and improve operational efficiency. It also plans to cancel all 730,000 treasury shares repurchased this year within the fourth quarter.
The latest figures show a business relying not only on consumer electronics, but also on automotive, climate systems and recurring service revenue to support earnings, with operating profit for the first three quarters reaching KRW 4.03 trillion.