• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About Strata-gee
  • Contact Us
  • Free Newsletter
  • Sponsor Strata-gee
  • Privacy Policy
  • Latest Posts
  • Strategy
  • Technology
  • Products
  • People
  • Statistics
  • Financial
  • Legal
  • Economic Data
  • Shows & Events

Strata-gee.com

Strategy in TECH...

What Savant Can Do
You are here: Home / Asian Connection / LG’s Fiscal 2019 Q1 Revenues & Income Decline

LG’s Fiscal 2019 Q1 Revenues & Income Decline

May 1, 2019 by Ted Leave a Comment

Overall Results Decline, But Company Hails Record Results in Home Appliances

LGs logo

LG Electronics Inc., a leading manufacturer in a diverse range of businesses, announced their fiscal 2019 first quarter results this week. With consolidated sales of KRW (Korean won) 14.92 trillion ($13.27 billion) and an operating profit of KRW 900.6 billion ($801.25 million), the company showed respectable numbers, but those results that represented a decline for the quarter.

LG’s Q1 declined, read on to see why…

While a cursory look at LG’s quarterly numbers seem quite impressive, in fact, the company’s overall numbers actually declined in the quarter. And this decline was not just on a sequential basis versus Q4/2018, but also on a year-over-year basis as compared with the same quarter in 2018.

LG’s consolidated results for Q1/2019 was KRW 14.92 trillion or down 5.4% as compared to their Q4/2018 result of KRW 15.77. This year’s quarter was also down a more modest 1.4% as compared to the revenues of KRW 15.12 in the same quarter last year. However, the company noted that operating income in the first quarter was 1,090% higher than the previous quarter thanks to “improved structures across major business units.”

Savant

Not only was the overall result disappointing, but the company suggested it anticipated a difficult 2019, telling investors in a presentation that it expected a global economic slowdown this year. It also expects global trade disputes to be a complicating factor.

LG financial results for the first quarter of 2019
Here you see a graph comparing Q1/2019 revenues (red bar) versus the previous quarter and Q1/2018. This quarter showed declines versus both of the other quarters, but operating income improved over the previous quarter.

Record Results in One Division

But the company quickly pivoted to touting a bright spot in their Q1/2019 results – their Home Appliance & Air Solutions division which has reported a record first-quarter revenues and profits result. Sales for the division in the quarter came in at KRW 5.47 trillion ($4.86 billion) or 26% higher than the sales of KRW 4.33 trillion the previous quarter. Also, this result was 11% higher than sales of KRW 4.92 trillion in the same quarter a year earlier.

The company said the strong performance of the appliance division was due to strong sales growth in Korea, Europe, and Asia. Particularly, LG noted, strong growth in sales of premium and new growth products, “especially in the domestic Korean market.”

Financial results for LG's Home Appliance and Air Solution division
In this graph you can see that LG’s Home Appliance and Air Solutions division had a record quarterly result both in revenues and operating margin

Operating profits for the Appliance division in the quarter came in at KRW 727.6 billion ($647.3 million). This is, the company says, “the highest quarterly revenue and operating income for the business unit in LG history.”

Crestron Infra-bass

Seasonal Weakness Hits Home Entertainment

LG’s Home Entertainment division – the division most meaningful to custom integrators with its LCD/LED/OLED flat panel TVs – booked first quarter revenues of KRW 4.02 trillion ($3.58 billion) which is 12.4% below revenues of KRW 4.59 the previous quarter and 3 percent below the same quarter last year. The company blamed the division’s sales decline on seasonal weakness in demand and, interestingly, “the lack of global sporting events.”

Operating income, at KRW 346.5 billion ($305.27 million), was up substantially over the previous quarter. Operating margins as well, increased substantially this first quarter versus the previous quarter. However, they were still well below the operating income in Q1/2018.

LG's fiscal results in their Home Entertainment division
LG’s Home Entertainment division saw revenue declines as compared to the previous quarter and the same quarter in 2018, but operating income did bump up versus the previous quarter

Smartphone Division is Snake-Bit

Of the company’s remaining divisions – Mobile Communications, Vehicle Component Solutions, and Business Solutions – the Mobile Communications, or smartphone division, seems the most snake bit. Revenues for the division had its fourth straight quarter of decline and the division lost KRW 203.5 billion ($181.05 million). LG says it is trying to rebuild its smartphone business but continues to be impacted by the double-headed monster of sluggish global demand and the “global expansion strategy of Chinese companies.”

Learn more about LG and it’s many products at: www.lg.com/us.

Share this post:

  • Tweet
  • Click to share on Reddit (Opens in new window) Reddit
  • More
  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print

Like this:

Like Loading...

Related

Filed Under: Asian Connection, Financial, Management, Manufacturers, News Tagged With: LG

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search

Sign-Up for Our FREE Newsletter

loader

Latest Posts

T-Day+1: Tariffs…And So It Begins…

**NEW Update 6/13/25** - See a Selection of Tariff Programs from Around the … [Read More...] about T-Day+1: Tariffs…And So It Begins…

Multiple Executive Changes Announced by Masimo; COO Muhsin to Resign July 1

In a new Form-8K filing with the Securities and Exchange Commission (SEC) on … [Read More...] about Multiple Executive Changes Announced by Masimo; COO Muhsin to Resign July 1

  • T-Day+1: Tariffs…And So It Begins…
  • A Dramatic Finale: Judge Orders Lutron to Pay GeigTech *Double Damages,* Interest & Costs
  • I’ve Gone Fishing…
  • In Its Boldest Move Yet, AVPro Global Acquires Control Solutions Maker RTI

Categories

Sponsors

Crestron Infra-Bass
AudioControl Single Zone Amps
Sonance James Small Aperture
Savant
Oasys Residential Technology Group

Tag Cloud

acquisition Amazon Apple AudioControl B&W Bowers & Wilkins CEDIA CEDIA Expo CES Control4 Core Brands COVID-19 Crestron D&M Holdings Denon Emerald Expositions Foxconn Gibson Brands Gibson Guitar Google Henry Juszkiewicz Hon Hai Precision Industry Co. housing starts Integra Joe Kiani LG Marantz Masimo Nortek OLED Onkyo Panasonic patent infringement Pioneer Samsung Savant Sharp smart home SnapAV Snap One Sonos Sony Sound United SpeakerCraft Toshiba

Footer

Got News?

HEY PR & Marketing Pros: Have NEWS for Strata-gee readers?

Send it to: HotNews@strata-gee.com

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Sponsor Strata-gee

Strata-gee Ads

Archives

Translate

Ted Green Bio

A former dealer, manufacturer, distributor & more. Focusing on business strategy, my goal is to help you make better decisions for greater success.

Follow Ted Green

  • Facebook
  • X
  • LinkedIn
  • Instagram

Copyright © 2025 Strata-gee.com · The Stratecon Group, Inc. All Rights Reserved · Log in

%d