Seoul: LG Electronics on Tuesday estimated its first-quarter operating profit to have increased 33 per cent from a year earlier, driven by strong performance of its mainstay home appliance business. Operating profit for the January-March period came to 1.67 trillion won (US$1.1 billion), compared with 1.25 trillion won a year earlier, the company said in a regulatory filing. Sales rose 4.4 percent to 23.73 trillion won, marking a record high for a first quarter. Net profit data was not available. The company will release its final earnings report later this month.
In the fourth quarter, LG Electronics posted an operating loss of 109 billion won, due mainly to weak market demand and one-off costs related to its restructuring program. LG Electronics said its home appliance solution division maintained growth by bolstering its subscription business and focusing on the premium segment. The media and entertainment solution business returned to profit from a loss in the fourth quarter of 2025, on the back of the company's cost-cutting efforts, it added.
The vehicle solution business improved profitability from a year earlier, LG Electronics said, without providing details. The recent weakness of the Korean won against the greenback provided some positive effects on the segment, as most of its clients are based overseas, it added. LG Electronics said the eco solution business experienced a decline in sales and operating profit in the first quarter from a year earlier amid market uncertainties, adding it will continue efforts to target demand related to artificial intelligence (AI) data centres.
For the remaining of 2026, LG Electronics said it plans to continue cutting costs to address rising raw material prices. The company will continue fostering future growth engines, including home robots and related accessories, it added. "Amid the growing cost burden from geopolitical factors, including the Middle East war, macroeconomic instability and rising raw material and logistics costs, LG Electronics plans to minimise the impact by taking flexible and preemptive measures," the company said in a release.
Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.
