LG ANNOUNCES THIRD-QUARTER 2019 FINANCIAL RESULTS
LG Electronics Inc. (LG) announcedrecord-breaking third-quarterconsolidated revenues of KRW15.7 trillion (USD 13.15 billion) and operating profit of KRW 781.4 billion (USD 654.4 million) for the July-September period.Sales increased 1.8 percent and operating income was 4.4 percent higher compared with the same period last year, primarily due to the strong performance of the home appliance, home entertainment and business solutions business units, while losses narrowed for mobile communications in the quarter.
The LG Home Appliance & Air Solution Companyreported its highest third-quarter sales of KRW 5.33 trillion (USD 4.46 billion),increasing nearly 10 percent from the same period last year thanks to strong performance in North America, Europe, Asia and the Middle East. Operating income of KRW 428.9 billion (USD 359.2 million) represented a 3.8 percent increase from the third quarter last year due to a combination of improved sales, ongoing cost reductions and lower raw material prices.
The LG Home Entertainment Companyrecorded quarterly revenues of KRW 3.87 trillion (USD 3.24 billion), an increase of 3.5 percent from the 2018 period, reflecting strong sales in Latin America and the Middle East. Although operating income of KRW 318 billion (USD 266.3 million) declined slightly from a year ago due to intense market competition and a weaker exchange rate, strong sales of premium products such as OLED TVs resulted in a healthy quarterly operating margin of 8.2 percent for the quarter.
The LG Mobile Communications Company reported sales of KRW 1.52 trillion (USD 1.27 billion) for the quarter in a challenging global smartphone market.Compared with the previous quarter, operating loss narrowed significantly to KRW 161.2 billion (USD 135 million) due to production efficiencies and cost improvements.
The LG Vehicle Component Solutions Companygenerated quarterly revenues of KRW 1.34 trillion (USD 1.12 billion), an increase of 14 percent from the third quarter last year thanks to increased sales in infotainment systems. Higher mass production setup costs related to new projects contributed to an operating loss of KRW 60.1 billion (USD 50.3 million) in the third quarter of 2019.
The LG Business Solutions Companyreported sales in the third quarter of KRW 698.7 billion (USD 585.2 million), 21.2 percent higher than the same quarter last year due to stronger sales of information displays and solar modules in key markets. Operating income increased 90 percent year-on-year to KRW 66.8 billion (USD 55.9 million) as a result of improved productivity and higher sales.
2019 3Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending September30, 2019. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW1,194per USD.
Earnings Conference and Conference Call
LG Electronics will hold an English language conference call on October 31, 2019 at 09:00 Korea Standard Time (00:00 GMT/UTC). Participants for the English conference call are instructed to call +82 31 810 3061 and enter the passcode 6418#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at approximately 16:00 on October 30, 2019. Visithttp://pin.teletogether.com/engand pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142960# when prompted.
Om LG Electronics
LG Electronics, Inc. är en globalt ledande teknologisk innovatör inom hemelektronik, mobilkommunikation och hushållsapparater, med över 70 000 anställda som arbetar på 140 platser runt om i världen. LG består av fem affärsenheter - Home Appliance & Air Solutions, Home Entertainment, Mobile Communications, Vehicle Components and B2B - och är en av världens ledande tillverkare av TV, mobiler, luftkonditioneringsapparater, tvättmaskiner och kylskåp. LG hade 2018 en total global försäljning på 54,4 miljarder dollar. För mer information och nyheter om LG Electronics, besök www.LGnewsroom.com.