SEOUL, July 25 (Xinhua) -- South Korea's tech giant LG Electronics logged a double-digit fall in the second-quarter profit due to the U.S. tariffs imposition and stiff competition, the company said Friday.
Operating profit dived 46.6 percent from a year earlier to 639.4 billion won (464.1 million U.S. dollars) in the April-June quarter.
Revenue dipped 4.4 percent to 20.74 trillion won (15.1 billion dollars), and net income reduced 3.1 percent to 609.7 billion won (442.5 million dollars) in the second quarter.
The downturn was attributed to intensified competition, higher logistics expenses and increased tariff burdens, driven by changes in the U.S. trade policy.
The media entertainment unit, which manufactures TV, recorded an operating loss of 191.7 billion won (139.1 million dollars) on revenue of 4.39 trillion won (3.2 billion dollars).
The company said softened demand led to lower TV sales and higher marketing costs.
LG's flagship home appliance business registered an operating profit of 439.9 billion won (319.3 million dollars) with revenue of 6.59 trillion won (4.8 billion dollars).
Both revenue and profit achieved the company's highest-ever second-quarter performance thanks to its dual-track strategy targeting both premium and mass-market segments.
The vehicle solution unit, which produces vehicle components, generated its record second-quarter operating profit of 126.2 billion won (91.6 million dollars) on revenue of 2.85 trillion won (2.1 billion dollars).
It was powered by a robust order backlog and higher OEM vehicle sales, especially in Europe.
The eco solution division, which makes heating, ventilation and air conditioning (HVAC) products, won an operating profit of 250.5 billion won (181.8 million dollars) with revenue of 2.64 trillion won (1.9 billion dollars).
The record second-quarter performance was driven by strong domestic demand for residential air conditioners and the continued expansion in commercial and industrial HVAC segments. ■
