LG Electronics recorded a solid operating profit in the first quarter despite the global economic downturn.
The South Korean electronics maker said on Friday that it posted 20.4 trillion won in revenue and 1.5 trillion won in operating profit in the first quarter of 2023. Both revenue and operating profit dropped on a year-on-year basis but its operating profit figure is its third-highest quarterly figure to date.
LG credited the performance on its "radical improvement on effectively managing the business structure and operational method." The company formed what it calls a war room task force to handle the crisis which is now showing results, it said.
LG also said it benefited from a one-time royalty payment this quarter compared to last year -- LG licenses its patents related to smartphones and telecommunication to other companies, though it didn't say which company it was in a business relationship with. The South Korean electronics maker also credited the growth of its automotive parts business.
South Korean analysts had expected an operating profit of 1.24 trillion won for the company during the quarter, and LG exceeded this by 20%.
LG also beat rival Samsung in operating profit for the first time in 14 years as the latter suffered major losses in its chip business. LG is expected to announce its full earnings report at the end of the month.