Thanks to strong sales across the board.
Revenue for LG in Q1 2017 was KRW 14.66 trillion (A$20 billion), an increase of 9.7% from the previous corresponding period. Operating income doubled to KRW 921.5 billion (A$1.08 billion) with the home appliance and air solutions divisions posting the highest quarterly operating income in eight years.
Home Appliance and Air Solution reported a 10% increase in first-quarter sales from the same period a year earlier and 15% higher than the previous quarter. Revenues of KRW 4.64 trillion (A$10 billion) reflected strong performance in Asia and Latin America.
Domestic sales were 33% higher year-over-year due to strong performance by TWINWash washing machines, air conditioners and some refrigerators, as well as the company’s newest premium LG Styler clothes management system and air purifiers. As LG enters the peak season, the company foresees an improvement in the business environment across much of Asia and Latin America, two key growth markets.
Home Entertainment recorded its highest first-quarter operating margin of 8.8% on sales of KRW 4.33 trillion (A$10 billion), largely due to expanding sales of premium products, improved cost structure and a more flexible strategy to deal with the increase in panel prices.
The company expects TV demand in the next quarter to remain positive due to opportunities in North America, Latin America and Asia, led by the growing popularity of premium LG OLED and Ultra HD TV products and the rollout of the new LG Signature OLED TV W.
Mobile Communications reported revenues of KRW 3.01 trillion (A$20 billion), an increase of 4% quarter-over-quarter and 2% year-over-year, driven by the launch of the flagship LG G6 smartphone and new mass-tier models. The company reported smartphone shipments of 14.8 million units this quarter, up 10% from the first quarter of last year in large part due to the Americas.