LG Electronics Inc. reached its highest-ever third-quarter revenue while battling headwinds from sluggish electric vehicle sales and surging shipping costs.
The South Korean electronics maker reported revenue of 22.18 trillion won ($16.5 billion) and operating profit of 751.9 billion won ($560 million) for the quarter. While sales hit a record, profit declined as the company grappled with increased expenses and cooling demand in its vehicle components business.
The company’s mainstay home appliance division helped offset weakness elsewhere, with sales climbing 11.7% to 8.34 trillion won. The unit benefited from subscription services growth and commercial air conditioning sales despite delayed recovery in global demand.
LG’s TV business saw revenue rise 5.2% to 3.75 trillion won, driven by European OLED sales. However, sharp increases in LCD panel prices squeezed margins.
The vehicle components unit posted just 1.1 billion won in operating profit as electric vehicle demand softened and R&D costs rose. The division is investing heavily in software-defined vehicle technology despite near-term market challenges.
The company also announced plans to exit its battery pack business following a board decision last month, with the unit’s financials now classified as discontinued operations.
Looking ahead, LG expects gradual market improvement but remains cautious about persistent logistics costs and competitive pressures.
