LG Remains Optimistic Despite Slowdown in Q2 Financial Results - TeknoGadyet

Monday, August 24, 2020

LG Remains Optimistic Despite Slowdown in Q2 Financial Results

Despite some setbacks due to the consequences brought by the coronavirus pandemic, South Korean technology giant LG Electronics Inc. expressed optimism in its second-quarter 2020 financial results driven by the growth of its mobile communications department.

LG Remains Optimistic Despite Slowdown in Q2 Financial Results
LG Announces Second Quarter 2020 Financial Results

LG’s Mobile Communications Company jotted down second-quarter sales of KRW 1.31 trillion of USD 1.07 billion, tallying a 31.1% increase from its first-quarter revenues. LG is optimistic that the launch of its new promising smartphone models, including the rollout of the LG Velvet in the third quarter of the year will bring sales, momentum, and profitability to the company.

The firm’s overall second-quarter 2020 financial results, on the other hand, recorded a 17.9 percent decline as compared to last year’s figures with a consolidated revenue of KRW 12.83 trillion or USD 10.51 billion. LG’s operating profit also dropped by 24.1 percent from last year’s second-quarter operating income.

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The weakened global demand amid the pandemic also resulted in a 15.5 percent drop in the revenues of LG’s Home Appliance and Air Solution Company which reported revenues of KRW 15.6 trillion of USD 4.22 billion also in the second quarter.  Operating income of KRW 628 billion (USD 514.23 million) declined 12.5 percent year-on-year even though operating profit margin of 12.2 percent was the highest second quarter in the history of the LG H&A Company. In spite of this, LG is looking into a positive trend as consumers take an interest in healthier living.

The firm’s Home Entertainment Company, Vehicle Component Solutions Company, and Business Solutions Company have likewise encountered slowdowns but LG affirms that it has come up with measures and has refocused its business strategy on optimizing operating efficiencies to bring profitability and on creating more business opportunities.

For its business solutions department, LG aims to cement its presence in telecommuting and distance-learning markets.

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