LG records strong profits despite global economic downturn

LG Electronics posted strong operating profit in the first quarter despite the global recession.

The South Korean electronics maker said on Friday it posted sales of KRW 20.4 trillion and operating profit of KRW 1.5 trillion in the first quarter of 2023. By now he is the third highest quarterly figure.

LG rated its performance for “fundamental improvements in effectively managing business structures and operating methods.” The company formed what it calls the Warm Room Task Force to deal with the crisis and is now seeing results, the company said.

LG also said it has benefited from a one-time royalty payment this quarter compared to last year. __ LG licenses patents related to smartphones and telecommunications to other companies. The South Korean electronics maker has also acknowledged a growing auto parts business.

South Korean analysts had expected the company’s operating profit to reach 1.24 trillion won for the quarter, but LG beat that by 20%.

LG also beat rival Samsung in operating profit for the first time in 14 years. The latter suffered heavy losses in its chip business. LG is expected to release a full earnings report at the end of the month.