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LG Electronics' operating profit falls 10.8 pct in Q1

SEOUL
2024-04-25 15:18

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SEOUL, April 25 (Xinhua) -- South Korean tech company LG Electronics posted a double-digit fall in its first-quarter operating profit due to global economic uncertainties, the company said Thursday.

Consolidated operating profit declined 10.8 percent from a year earlier to 1.34 trillion won (973.2 million U.S. dollars) in the January-March quarter.

It topped market expectations of about 1.27 trillion won (922.4 million dollars), but the profit diminished in double figures on the back of challenging macroeconomic conditions, including high commodity prices, volatile exchange rates, rising interest rates and delayed demand recovery.

Revenue grew 3.3 percent to 21.1 trillion won (15.3 billion dollars), marking the highest first-quarter revenue in the company's history, while net income increased 7.1 percent to 585.4 billion won (425.2 million dollars).

The home appliance unit recorded an operating profit of 940.3 billion won (682.9 million dollars) on revenue of 8.6 trillion won (6.2 billion dollars) in the first quarter.

The revenue set a new record for the first-quarter performance, and the profit reached the second-highest amount in the company's history.

The vehicle component business generated an operating profit of 52 billion won (37.8 million dollars) on revenue of 2.66 trillion won (1.9 billion dollars) in the January-March quarter.

The revenue advanced 11.5 percent compared to the same quarter of last year.

The TV-manufacturing division logged an operating profit of 132.2 billion won (96 million dollars) on revenue of 3.49 trillion won (2.5 billion dollars).

The business solutions unit registered an operating profit of 12.8 billion won (9.3 million dollars) on revenue of 1.57 trillion won (1.1 billion dollars).
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