LG Electronics reported record first-quarter revenue on Wednesday, with its home appliance and vehicle components businesses emerging as key growth drivers.
The company posted consolidated revenue of 23.73 trillion won ($17.5 billion), up 4.3 percent from a year earlier, and operating profit of 1.67 trillion won, up 32.9 percent. Revenue marked a record high for a first quarter, while operating profit was the third-highest on record, LG said.
Combined quarterly revenue from its home appliance business -- excluding TVs and air conditioners -- and vehicle solutions division surpassed 10 trillion won for the first time, underscoring a shift toward more stable, business-to-business revenue streams.
Business-to-business sales rose to 6.5 trillion won, accounting for 36 percent of total revenue, while its subscription-based business continued double-digit growth, with revenue reaching 640 billion won.
By division, the home appliance solution unit posted revenue of 6.94 trillion won and operating profit of 569.7 billion won, delivering its highest-ever quarterly sales. The company explained its profitability remained solid at 8.2 percent despite higher raw material costs and US tariffs, supported by a dual-track strategy targeting both premium and mass segments, as well as growth in online and subscription sales.
The media entertainment solution division reported revenue of 5.17 trillion won and operating profit of 371.8 billion won, improving both on-year and from the previous quarter, aided by strong premium TV sales and growth in its webOS platform business, alongside tighter cost controls.
The vehicle solution unit posted record revenue of 3.06 trillion won and operating profit of 211.6 billion won, driven by increased demand from European automakers for premium in-vehicle infotainment systems. Operating margin exceeded 6 percent for the first time, reinforcing its position as a stable business-to-business cash generator alongside appliances.
The eco solution division reported revenue of 2.82 trillion won and operating profit of 248.5 billion won, down from a year earlier due to weaker demand linked to Middle East tensions and higher labor costs. The company said it plans to expand region-specific offerings such as heat pumps in Europe and to strengthen nonhardware business, including installation and maintenance.
herim@heraldcorp.com
