LG’s Q3 performance struggles, pulled up by home appliance business

While its main rival Samsung is suffering from a big blow, LG is sharing the good news that its profits are up but it’s not because of the mobile business. Offsetting poor sales and operating losses in LG is the Home Appliance & Air Solution that shows increased profitability. Last quarter sales hit $11.8 billion (KRW 13.2 trillion) and a $252.7 million (KRW 283.2 billion) operating income.

Year-on-year figure shows improvement. Q3 revenue of the home appliance and air is up 3% from last year, thanks to the Asian and European markets where LG appliances are popular. Home appliances and air conditioners are bestsellers. When it comes to the mobile division, the LG G5 didn’t quite sell but the company is hopeful that the new LG V20 will help although the effect may only be felt after this quarter is over.

LG Mobile Communications’ revenues declined by 23 percent from last year, same quarter. It only hit $2.3 billion while the $389.4 million operating loss resulted largely from some business improvements and the low sales of the premium phones.

LG also did well in North America, showing a 14% increase from Q2 with about 13.5 million units. The new LG V20 and the LG K and X phones are expected to help pull up numbers this Q4. There’s also the fact that it’s the holiday season so we’re hoping mobile business will be good for LG.

LG also sold a lot of OLED and Ultra HD TVs. Prices were lowered so sales went down a bit to 3.4% from last year, same quarter.

SOURCE: LG