According to The Yonhap news Agency reported that LG Electronics on July 7 released a earnings report, preliminary verification of the company's second quarter operating profit decreased by 12%, 791.7 billion won (about 4.08 billion yuan); Sales rose 15 percent year-on-year to 19.472 trillion won.
LG Electronics' second-quarter operating profit and sales fell 59.3% and 7.1%, respectively, from the previous quarter, the report showed. Sales in the second quarter were 19.4379 trillion won, but operating profit fell short of expectations (863 billion won).
The report analyzed that LG electronics business performance was also affected by low consumer sentiment due to inflation and high interest rates, as well as rising raw material prices and logistics costs.
By sector, LG Electronics' TV division saw its operating profit and sales fall year on year due to the resumption of pre-epidemic life and weaker global demand for TV products, the report said. But the auto parts (VS) division's sales topped 2 trillion won for the first time and its operating profit turned positive for the first time since the fourth quarter of 2015, playing a key role in the year-on-year growth.
LG electronics said that while delays in vehicle production due to a shortage of on-board semiconductors have eased to some extent, the auto parts division's good results are mainly the result of the company's active response to increased demand through effective supply chain management, the report said.
