LG Electronics’ operating profits for the second quarter dropped slightly over 24% from a year prior due to the global pandemic.
LG Electronics has posted 495.4 billion won in operating profits and sales of 12.8 trillion won for the second quarter of 2020.
LG’s home appliance business, its main profit contributor, posted operating profits of 628 billion won, down 12.5% from a year prior. The company stressed, however, that the margin rate for the business during the second quarter was 12.2% thanks to strong sales from its premium products and cost-cutting efforts.
The TV business saw operating profits decline almost 26% year on year by earning 112.8 billion won. Profitability and revenues were impacted by lockdown measures, including store closures, but the business will reduce costs and control marketing expenses going forward to bring profitability back to last year’s levels, LG said.
Demand for TVs is expected to recover in the third quarter, with LG saying it would push its OLED TVs accordingly.
The mobile business, meanwhile, posted yet another operating loss of 206.5 billion won, marking 21 consecutive quarters of loss. The rate of loss was smaller compared to the previous quarter and the year prior, the South Korean company stressed, saying it has plans to launch new “attractively-priced models” to create momentum.
The LG Velvet smartphone will also be launched in more countries in the third quarter, the company added.
It is offering free power board replacements for around 60,000 OLED TVs in South Korea due to an overheating issue.
LG Electronics said it would showcase its new home appliances.
LG Cloi Servebot will assist hospital staff by carrying medical equipment at Seoul National University Hospital.
The South Korean company’s home appliance and TV businesses have been negatively impacted by the COVID-19 pandemic.