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LG Announces Highest Quarterly Profit Since Q2 2009

Following Samsung, who announced its Q1 2018 financial results earlier today, LG has just released its financial report as well, for the same period. LG posted consolidates sales of 15.12 trillion won ($14.1 billion), and operating profit of 1.11 trillion won ($1.03 billion). According to the report, LG’s sales rose 3.2-percent compared to the same period last year, while the company’s operating income increased by more than 20-percent compared to Q1 2017. LG says that this is its highest first-quarter profit and revenue in history, and also the highest quarterly profit since the second quarter of 2019.

LG’s Mobile Communications Company did not do that well, however, it recorded sales of 2.16 trillion won ($2.01 billion), and operating loss of 136.1 billion won ($126.85 million). Compared to Q1 2017, LG’s sales declined, and the company blames its revised smartphone launch strategy for that, which makes sense. The company did, however, shrank its operating deficit, and LG says that happened due to the fact it constantly improves its business structure. For those of you who do not know, the LG G7 ThinQ will be announced on May 2, and LG is expecting a profit increase thanks to it in the coming quarter(s). In its press release, LG also reminded consumers that its Software Upgrade Center will deliver timely updates and higher-quality customer support. Now, unlike the company’s Mobile business, its Home Appliance & Air Solution Company, and the LG Home Entertainment Company reported their largest quarterly operating profit ever. The LG Home Appliance & Air Solution Company posted revenues of 4.92 trillion won ($4.59 billion), and operating profit of 553.1 billion won ($515.51 million). The LG Home Entertainment Company, on the other hand, reported sales of 4.12 trillion won ($3.84 billion), and operating profit of 577.3 billion won ($538.07 million).

The LG Vehicle Components Company posted revenues of 840 billion won ($782.9 million), and an operating loss of 17 billion ($15.84 million). The LG Business-to-Business company didn’t do all that bad, it reported sales of 642.7 billion won ($599 million), and operating profit of 78.8 billion ($73.45 million). LG’s OLED Signage displays had a positive impact on LG’s finances, and the company is expecting that trend to continue moving forward. LG really seems to be pushing its ThinQ branding which revolves around AI, and it remains to be seen if the company’s upcoming G7 ThinQ flagship will be as popular as LG hopes it will.