2024 First Quarter Performance and Outlook

LG Electronics Inc. reported better-than-expected first-quarter operating profit, driven by resilient sales of its premium home appliances. However, the company struck a note of caution regarding its television business for the remainder of the year.

The company’s operating profit for the January-March period rose to 1.33 trillion Korean won ($973 million), surpassing analysts’ forecasts. The robust performance was anchored by the Home Appliance & Air Solution Company (H&A), which continues to see solid demand in key markets like North America for its high-end refrigerators, washers, and air purifiers. This division’s focus on energy-efficient and connected products has fortified its margins against economic headwinds.

In contrast, the Home Entertainment (HE) unit, responsible for TVs, faces a more challenging landscape. While sales of premium OLED models remain steady, overall global TV demand is expected to be muted in 2024. LG highlighted increased competition and market volatility as primary concerns.

Looking ahead, LG plans to double down on its B2B growth engines—including vehicle components, EV charging solutions, and robotics—to diversify its revenue base and navigate the uncertain consumer electronics cycle.