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| ▲ This file photo taken on July 30, 2020, shows the headquarters building of LG Group in Seoul. (Yonhap) |
(LEAD) LG Electronics-Q2 earnings
(LEAD) LG Electronics Q2 profit down 6.2 pct on-year due to one-off provision
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SEOUL, July 27 (Yonhap) -- LG Electronics Inc. reported a 6.2 percent fall in second-quarter operating profit, primarily due to a one-time provision.
The company said in a regulatory filing that operating income for the April-June period came to 741.9 billion won (US$581 million), down from the 892.7 billion won it had predicted earlier this month.
LG said the second-quarter profit was revised down after including the one-time provision of 151 billion won related to General Motors' recall of the Chevy Bolt EV. This provision, it said, reflects the increases in material costs that occurred during the recall period.
Sales increased 2.7 percent to 19.99 trillion won. Second-quarter net profit came to 195.3 billion won, down 42.2 percent from a year earlier.
The operating profit was 23.8 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Except for the one-off costs, LG said it hit record quarterly sales, largely thanks to its efforts to "fundamentally improve its business structure by pursuing new platform-based service businesses and continuously expanding the business-to-business (B2B) segments."
Its home appliance and air solutions division logged an operating profit of 600.1 billion won, up 40 percent from a year ago, on the back of solid demand for high-end home appliances, air conditioners and energy-efficient heat pump-enabled products.
The vehicle component solutions division reported quarterly sales of 2.66 trillion won, the highest second-quarter revenue in company history. But it logged an operating loss of 61.2 billion won due to the one-time provision of 151 billion won.
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