LG Electronics posts record Q2 earnings on premium appliances, U.S. tariff refund
The company's total operating profit now stands at 3.25 trillion won ($2.1 billion) for the first half of the year, surpassing last year's entire 2.48 trillion won operating profit.
An attendee passes by a display of LG OLED evo W6 Wallpaper TV at the LG Electronics booth during CES 2026 in Las Vegas on Jan. 7.REUTERS/YONHAP
LG Electronics on Tuesday reported record second-quarter results, with revenue and operating profit rising 14.9 percent and 146.9 percent, respectively, from a year earlier.
The company’s latest quarterly preliminary earnings report shows that it achieved consolidated revenue of 23.83 trillion won ($15.6 billion) and operating profit of 1.58 trillion won.
That puts LG Electronics’ total operating profit at 3.25 trillion won for the first half of the year, surpassing last year’s entire 2.48 trillion won operating profit.
The strong performance was driven by solid growth in LG Electronics’ core home appliance business, particularly its premium products. Most notably, air conditioner sales rose in overseas markets.
Steady growth in the company’s vehicle components sector also helped offset uncertainty stemming from the conflict in the Middle East.
“The cost of the voluntary retirement program introduced in April to streamline our work force was reflected in second-quarter earnings,” the company said. “However, we were able to maintain profitability by improving cost competitiveness across our divisions and implementing companywide emergency management measures to respond proactively to the uncertain business environment.”
A tariff refund also boosted LG Electronics’ earnings.
The U.S. Supreme Court on Capitol Hill in Washington on April 25, 2024AP/YONHAP
Following the U.S. Supreme Court’s ruling that parts of the Trump administration’s tariff policy were unlawful, LG Electronics sought a refund on tariffs that it had paid on exports to the United States.
Securities analysts estimate that the company received about 300 billion won in refunds.
“We recognize the confirmed tariff refund as a one-time gain,” the company said. “But even excluding [the refund], the second-quarter operating profit still increased significantly from a year earlier.”
The preliminary results were prepared in accordance with the Korean International Financial Reporting Standards.
LG Electronics plans to disclose its second-quarter net profit and detailed performance by business division during its earnings conference later this month.
The company also aims to maintain its growth momentum in the second half of the year.
For its home appliance business, LG Electronics is set to continue its strategy of targeting both the premium and broader mass markets and expand business-to-business operations, including commercial washing machines and built-in appliances.
The company’s media and entertainment business sector aims to strengthen its premium television lineup with new products, such as the OLED evo TVs, which offer enhanced picture quality, and Micro RGB evo TVs, which deliver improved color accuracy.
Visitors look at an LG Electronics OLED evo TV on March 26.LG ELECTRONICS
Its component business plans to drive growth by expanding its portfolio beyond appliance components and into robot actuators.
“The home appliance division has successfully managed costs while demonstrating the potential of its new businesses,” Choi Bo-young, an analyst at Kyobo Securities, said. “We expect LG Electronics’ profitability to improve structurally.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
