Despite the challenging global macroeconomic environment, LG Electronics (KRX: 066570) has reported an “earnings surprise” for the first quarter, surpassing Samsung Electronics’ operating profit for the first time since 2009.
LG Electronics reported a 22.9% year-on-year decline in operating profit to KRW 1.5 trillion and a 2.6% decline in revenue to KRW 20.4 trillion.
However, these figures represent the company’s second-highest revenue and third-highest operating profit.
On the other hand, Samsung Electronics’ Q1 operating profit plunged 95.8% year-on-year to KRW 600 billion, mainly due to a decline in its memory business.
LG Electronics operating profit beat the consensus by 20.7%, with 11 securities firms predicting a 34.03% year-on-year decline to KRW 1.24 trillion.
LG Electronics attributed its strong performance to its efforts to improve its business structure by proactively operating “war rooms” and other facilities.
The company’s growth strategy focused on premium sales has been effective despite global economic uncertainties.
In addition, the scale of cost reductions in vital raw materials and logistics exceeded expectations, contributing to the company’s impressive first-quarter results.
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