LG Electronic has just released the company’s financial record from the second quarter of 2019. The company expected a significant raise from the previous year. Yet the financial result shows the raise was not as high as expected.
According to the financial reports released at July 7th, the company sale went up to 4.1% year on year. It was KRW 15.2 trillion ($13.7 billion) the same quarter last year. Now, the company recorded KRW 15.7 trillion ($14.1 billion) sales this year.
Even though the sales went up, the operating profit went down instead. LG experienced a deep 15% annual fall this year. It was KRW 717 billion ($645.3) in second quarter of 2018. Now it is KRW 652 billion ($586.8 million). Worse, it went down by 27.6% from the previous quarter at KRW 960 billion ($864 million).
Expecting a good financial result, smartphone division sluggish performance still drags down the others
The company expected a good result in this quarter. It relies on the LG home appliances division. The division launched new series of dryer, steam washer. and wireless vacuum cleaner. Due to the popularity of the new lines, the company expected a KRW 780 billion of operating profit for the division.
However, the number can’t fully make up the sluggish performance of other divisions. Even though the company recorded an excellent sales on air purifiers and dryers.
LG Electronics has been experiencing a downfall on the TV and mobile division for a while. The overall operating profit fell sharply due to the deficits in smartphone division.
The release of the dual screen phone, LG V50 ThinQ did not increase the smartphone sales significantly. Even though the phone has some advantages ahead of Samsung’s.
LG has to find some serious breakthrough for the smartphone division. Before it has to forcefully close down the whole division.
