LG sees Q3 profit increase 23%

The company's increases in profit and revenue were backed by strong home electronics sales.

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Image: LG Electronics

LG Electronics announced on Friday it posted 959 billion won ($807 million) in operating profit and 16.9 trillion won ($14.2 billion) in revenue for the third quarter of 2020.

It is an increase of 22.7% and 7.8%, respectively, year-on-year.

According to LG, the growth was led by strong sales from its home appliances and home entertainment products.

The company's home appliance business saw profit soar 56.6% year-on-year to 671.5 billion won ($565 million) for the quarter.

The business also contributed 6.16 trillion won in sales, its highest ever for a quarter, LG said.

Washing machines and stylers showed high demand in the quarter, the company said, adding that it expects the fourth quarter to be even more profitable.

LG's TV business also saw a resurgence during the quarter through growing demand for premium products, such as its OLED TVs, in mature markets such as North America and Europe.

The TV business contributed 326.6 billion won ($275 million) in operating income, which was an increase of 13.2% year-on-year.

LG's mobile business, meanwhile, posted an operating loss of 148.4 billion won ($125 million). 

It is the mobile business' 22nd consecutive quarter of loss but the South Korean company said the rate of loss was narrower when compared to the same period a year ago and the previous quarter.

Compatriot Samsung Electronics also saw demand for home electronics soar in the third quarter, with the company saying there has been pent-up demand following the COVID-19 pandemic.

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