LG surpasses Samsung for the first time

Financial Business - Securities

Tuesday, May 2, 2023 15:00 (GMT+7)
15:00 5/2/2023

LG's first-quarter profit was nearly three times higher than Samsung's, despite concerns over the global economic downturn.

LG and Samsung are both technology giants in the land of kimchi. Photo: Reuters .

According to The Korea Herald , LG Electronics recently announced its first quarter financial figures. Notably, this is the first time the group has had business results surpassing its rival Samsung Electronics in more than a decade.

LG's financial report said operating profit in the first quarter reached 1.5 trillion won ( $1.12 billion ), down 22.9 percent from a year earlier. However, the figure was still higher than Samsung Electronics' $467 million in the same period.

However, LG Electronics' first-quarter revenue fell 2.6 percent year-on-year to 20.42 trillion won. Net profit fell 61 percent to 546.5 billion won.

LG's bright spot came from its home appliances and air solutions unit, which posted a record profit of 1.19 trillion won. This is the first time in the group's history that a business unit has recorded quarterly profits exceeding the 1 trillion won mark.

LG said the achievement was thanks to stable raw material costs and good sales of premium home appliances.

The company also said that demand for TVs is growing in the European market, and inventories have also decreased. This has helped LG's TV business recover and create a new turning point after the company posted losses for three consecutive quarters.

LG's auto components business unexpectedly posted the best results among the group's business categories, with revenue in the first three months of the year reaching 2.39 trillion won and operating profit at 54 billion won.

Analysts forecast LG could record a profit of up to 4.7 trillion won (about 3.5 billion USD ) this year, about 32% higher than last year.

“LG will enhance profitability by diversifying its business portfolio. We plan to strengthen competitiveness in content and services,” LG said in a statement.

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Thanh Vu

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