(MENAFN) South Korea's LG Electronics has announced a decline in quarterly operating profits by 11 percent compared to the corresponding period of the previous year, citing escalating costs and heightened competition as contributing factors. Despite this setback, the company's operating profit for the first quarter still reached a substantial 1.33 trillion won (approximately USD984.9 million).
While LG Electronics experienced a modest improvement in sales, which rose by 3.3 percent year-on-year to reach 21.09 trillion won, marking the highest level achieved in the company's first-quarter results, the decline in operating profits underscores the challenges faced within the industry.
LG Electronics attributed the decline in operating profits during the first quarter to the persistent increase in material costs and intensified competition in the market. Despite these challenges, the company managed to surpass the one trillion won mark for operating profits for the fifth consecutive year since the first quarter of 2020.
In response to market dynamics, LG Electronics has implemented new business strategies, including subscription-based models, as part of its efforts to diversify and expand its business portfolio. These innovative approaches are anticipated to serve as key growth drivers for the company in the future, as it navigates evolving market conditions and seeks to maintain its competitive edge in the global electronics industry.
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