SEOUL (dpa-AFX) - Shares of LG Electronics Ltd. were losing around 3 percent in the South Korean trading after the consumer electronics major reported Monday weak operating profit and revenues in its second quarter amid an unfavorable business environment.
In its preliminary second-quarter results, the company reported operating profit of 639.1 billion Korean Won, and consolidated revenue of 20.74 trillion won, both lower than the prior year.
According to the firm, the slowdown reflected continued weakness in consumer sentiment across major markets and an increasingly challenging external environment.
In particular, changes in U.S. trade policy led to higher tariff costs and intensified market competition, further weighing on performance.
However, LG's core businesses delivered solid performance and maintained sound profitability, including home appliance solutions, as well as B2B-driven segments such as vehicle solutions and heating, ventilation and air conditioning or HVAC.
Meanwhile, the media and entertainment solutions business was hit hard by slowdown in demand, higher LCD panel prices and increased marketing expenses amid intensifying competition. The segment's profitability was also affected by increased costs, including U.S. general tariffs, steel and aluminum derivative tariffs, and logistics expenses.
Looking ahead, in the second half, LG said it will focus on reinforcing its business fundamentals. The firm plans to prioritize areas of qualitative growth, such as expanding high-margin, stable-growth B2B sectors, scaling non-hardware businesses, and enhancing direct-to-consumer or D2C sales through LGE.COM, among others.
In South Korea, LG Electronics shares were trading at 74,700 won, down 3.24%.
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