LG Electronics expects to record a $738 million (996.5 billion won) operating profit in Q3’23, despite a 2.2% drop in sales to $15.72 billion (21.17 trillion won). No indication was given as to what the net income was going to be. Last year, LG recorded $554 million (746.6 billion won) in operating profits. The company claims it will have a backlog of $74 billion1(00 trillion won) in automotive sales by the end of this year.
Korean financial analysts had pegged results to be lower, and some US analysts had expected results to be higher so, it is a glass half full and glass half empty assessment depending on where you stand on the globe. LG Electronics seems to be excited by the whole thing because it has been cutting costs, looking to shore up its supply chains, and focusing on premium product sales.
However, the chief driver of the company’s success seems to be its moves in B2C businesses, particularly with HVAC and automotive electronics, where the company saw the most growth and profitability. The company is also intimating that its strategy to concentrate on combined content services and premium TV sales is helping to strengthen overall sales. LG Electronics didn’t give out specifics, but its television business is said to be holding steady despite decreases in demand worldwide, and its content businesses are growing significantly.