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LG Electronics |
[Alpha Biz= Reporter Kim Jisun] LG Electronics announced on October 8 that it achieved its highest-ever sales in the third quarter, but its profitability declined significantly due to soaring shipping costs and increased marketing expenses.
The company reported consolidated sales of 22.1769 trillion KRW and an operating profit of 751.1 billion KRW for Q3, representing a 10.7% increase in sales compared to the same period last year, while operating profit fell by 20.9%.
According to financial data provider FnGuide, the consensus forecast for LG Electronics' Q3 results was sales of 21.7719 trillion KRW and an operating profit of 1.0154 trillion KRW. While the actual sales surpassed this forecast, the operating profit fell short.
The decline in operating profit is attributed to rising logistics costs stemming from geopolitical instability, including the Russia-Ukraine conflict and tensions in the Middle East.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
