LG Electronics Q1 Net Profit Surges 14.8% on Strong Home Appliance Sales

LG Electronics Inc. said Wednesday its first-quarter net profit surged 14.8 percent from a year earlier, driven by a strong performance of its mainstay home appliance business. Its net profit came to 1 trillion won (US$680.4 million) for the January-March period, up from 876.6 billion won compared with a year earlier, the company said in a regulatory filing. Operating profit for the first three months jumped 32.9 percent to 1.67 trillion won, up from 1.25 trillion won a year earlier, it said. Sales rose 4.3 percent to 23.72 trillion won, marking a record high for a first quarter. LG Electronics said its home appliance solution division led the growth by bolstering its subscription business and focusing on the premium segment, while the vehicle solution business improved profitability from a year earlier. Combined sales of home appliance and vehicle departments surpassed 10 trillion won for the first time in the January-March period. LG Electronics said it will bolster its product lineup and expand its presence in the emerging markets to boost sales while diversifying supply chains and cutting costs to improve profitability in the second quarter.