Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = LG Electronics recorded sales growth for four consecutive quarters compared to the same period last year, but its operating profit fell due to factors such as rising logistics costs.

LG Electronics announced on the 8th that it had achieved provisional results for the third quarter of this year, with consolidated sales of KRW 22.1769 trillion and operating profit of KRW 751.1 billion.

LG Electronics' sales rose 10.7% year-on-year, recording the highest quarterly figure. Sales have continued to grow year-on-year for four consecutive quarters since the fourth quarter of last year. However, operating profit decreased 20.9% year-on-year. This is analyzed to be due to the increase in logistics costs and marketing expenses that have surged since the second half of the year.

“As a result of the bidding of ocean freight rates in the second half of the year, the average ocean freight rate per container is expected to increase by about 58% year-on-year, and marketing competition costs such as advertising expenses are expected to increase,” LG Electronics said in a conference call following its Q2 earnings announcement.

Cumulative sales for the third quarter were tallied at KRW 64.9672 trillion, up 9.1% year-on-year. Cumulative operating profit was KRW 3.2836 trillion, down 1.7% year-on-year.

LG Electronics plans to announce its consolidated net profit for the third quarter of this year and the performance of each business division at its earnings conference scheduled for the end of this month.

By Soon-ki Lee(s8789@nspna.com) and Jeonghwa Choi(choijh@nspna.com)

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