[Infostock Daily= reporter Song Jeong-hoon] LG Electronics announced on the 7th that it recorded sales of 14.7287 trillion won and operating profit of 1.90 trillion won in the first quarter of this year.
Sales fell 1.2% YoY, but operating profit surged 21.2% YoY. Compared with the previous quarter, operating profit increased by 971.1%. Sales decreased by 8.3%.
LG Electronics' operating profit exceeded 1 trillion won in two years after the first quarter of 2018.
This is considered to be an 'Earning surprise' that surpasses the average of securities firms' recent operating profit forecast of 870 billion won.
LG Electronics' strong performance is attributed to the large increase in sales of home appliances. Sales of air purifiers, cleaners, and other products increased significantly due to the effects of a new type of coronavirus infection (Corona 19 or COVID-19), and the growth of overseas sales and rental businesses also affected.
In the case of smartphones, there was a problem in supply due to the production of Chinese manufacturers' development and production (ODM), but it was analyzed that it was not affected by the reduction of marketing costs.
However, uncertainties in demand are expected to be inevitable due to the aftermath of Corona 19. LG Electronics' TV shipment forecasts and Smaff phone shipment forecasts have also been lowered.
Due to the postponement of the Tokyo Olympics, TV special effects have become difficult to expect, and concerns over demand stagnation have increased due to restrictions on movement in the US and Europe.
In the financial investment industry, LG Electronics' global smartphone and TV demand for the second quarter is expected to decline 30% and 22%, respectively.
Reporter Song Jeong-hoon email@example.com