LG Electronics Inc. said preliminary results for the January-March quarter point to a notable recovery in profitability, with consolidated operating profit expected at 1.67 trillion won ($1.1 billion), a 33% increase from the same period a year earlier. The company noted this follows an operating loss of 109.00 billion won in the prior quarter.
Revenue for the first quarter is reported as a record 23.73 trillion won, marking the strongest Q1 top line in the company’s reporting history.
Management attributed the improvement in earnings to early actions taken to reduce exposure to potential tariff risks, including production optimization, as well as wider enhancements to the cost structure. The company also highlighted expansion in higher-margin business lines as a contributor to the better operating performance.
Shares of the company were trading 1.7% lower at 107,600 won as of 03:17 GMT on the day the preliminary figures were released.
Division-level performance
The home appliance division remained a central driver of results, supported by what the company described as strong product competitiveness across both premium and mass-market segments. LG also pointed to growth in online sales channels and increased subscription-service adoption as positive forces for that business.
The vehicle solutions unit reported steady growth, aided by a solid order backlog and improved profitability. The company specified that some of the profitability gains were helped by favourable foreign exchange conditions.
By contrast, the HVAC division experienced declines in both revenue and profit. LG linked that weakness to geopolitical uncertainty, particularly in the Middle East. The company said it plans to pursue growth opportunities within HVAC that include heat pumps and cooling solutions tailored to AI data centers.
LG noted that these figures are preliminary and remain subject to confirmation when the company releases its final first-quarter earnings later this month.