LG Electronics reported its FY17 Q1 financial result with consolidated sales of KRW 14.7 trillion ($12.9 billion) and operating income of KRW 921.5 billion ($0.81 billion), resulting in an operating margin of 6.3%. The net profit stood at KRW 835.7 billion ($0.73 billion) with net profit margin at 5.7%.
Quarterly sales were down by a marginal 0.8% compared to the previous quarter but up by 9.7% on a yearly basis, primarily driven by sales expansion of the Home Appliance & Air Divisions in the domestic, Asia and LATAM markets. Both the operating income and net income recorded very high growth on yearly basis, up by 82% and 321% respectively.
While Home Appliance & Air Division drove the majority of the sales growth and profitability at a consolidated level, the Mobile Communication segment recorded marginal 2% sales growth on a yearly basis while the Home Entertainment segment showed no growth on account of weak market demand.
For FY17 Q2, the company expects high-single digit growth in sales on a quarterly basis with stable profitability.
