- LG Vehicle Component Solutions Company reported an operating loss of USD$ 81.8 million during Q1 2020
- The company said it registered increased sales of solar modules and IT products
LG Electronics (LG) has announced its first-quarter 2020 consolidated revenue of KRW 14.73 trillion (USD 12.45 billion) and operating profit of KRW 1.09 trillion (USD$ 921.47 million).
“Although revenue declined modestly compared with the same period last year, operating income improved 21.1 per cent from the 2019 quarter making this only the second time in history when quarterly operating profit exceeded KRW one trillion. The 7.4 per cent operating margin was the highest in LG’s history for a first quarter,” read LG’s official statement.
Declined revenues for LG’s vehicle component solutions company
The LG vehicle component solutions company recorded first-quarter revenues of KRW 1.32 trillion (USD 1.11 billion), a 2.1 per cent decline from the same period last year with an operating loss of KRW 96.8 billion (USD$ 81.8 million).
Korea-headquartered company see this a result of the business disruption of North American and European automakers. To minimise ongoing pandemic risk the company will accelerate its supply chain optimization efforts taking into consideration a reduction in demand from automakers and continue to improve its business structure with further cost savings in the second quarter.
Increased sales of solar modules and IT products
The LG business solutions company generated first-quarter sales of KRW 1.71 trillion (USD$ 1.44 billion), an increase of 3.5 per cent year-on-year and 18.8 per cent higher than the previous quarter thanks to increased sales of solar modules and IT products such as LG gram notebooks.
“Operating profit of KRW 212.2 billion (USD$ 179.3 million) marked 26.3 percent higher than the same period the year earlier and 159 percent higher than the previous quarter due to increased solar module sales, stable profitability from information displays and innovations in productivity,” read LG’s official statement.
It continued, ” To help minimize further pandemic disruptions, the company is expanding online sales efforts for IT product to capture a greater share of the telecommuting and distance-learning markets.
