OP Falls Due to Provisioning for Bolt EV Recall
LG Electronics announced on Oct. 12 that its sales and operating profit in the third quarter of 2021 were tentatively tallied at 18.7845 trillion won and 540.7 billion won, respectively.
Its sales increased 22.0 percent on year, and 9.8 percent on quarter. In particular, the sales figure surpassed the previous record of 17,812.4 billion won set in the first quarter.
However, its operating profit fell 49.6 percent compared to the same period of 2020 and 38.4 percent from the preceding quarter. This is because LG Electronics booked an additional 480 billion won in provisions for the GM Bolt recall in the third quarter following 234.6 billion won in the second quarter.
The company did not disclose business performances by sector, but market analysts estimated its household appliance sales at close to seven trillion won.
Its TV business is estimated to have exceeded 4 trillion won in sales, thanks to increased sales of OLED TVs. The VS business is believed to have failed to make a turnaround in the third quarter.
Market analysts forecast that LG Electronics will continue its strong business performance in the fourth quarter of this year, with its annual sales expected to surpass 60 trillion won for the first time. Until the third quarter, its cumulative sales added up to 53.7 trillion won. Its previous sales record was 58.1 trillion won posted in 2020.
LG Electronics is planning to officially announce its consolidated net profit and other details by business division at a corporate briefing session on the afternoon of Oct. 28.