SEOUL, Oct. 31 (Xinhua) -- South Korea's tech giant LG Electronics logged a single-digit fall in its third-quarter profit due to the U.S. tariffs imposition and the electric vehicle (EV) market slowdown, the company said Friday.
Operating profit declined 8.4 percent from a year earlier to 688.9 billion won (482.9 million U.S. dollars) in the July-September quarter.
It beat market expectations of about 600 billion won (420.6 million dollars).
Revenue shrank 1.4 percent to 21.87 trillion won (15.3 billion dollars) in the third quarter, but net income more than quadrupled to 461.0 billion won (323.2 million dollars).
The company said the profit downturn was driven by external challenges such as U.S. tariffs and a slump in the EV market.
LG's flagship home appliance business registered an operating profit of 365.9 billion won (256.6 million dollars) with revenue of 6.58 trillion won (4.6 billion dollars).
The higher year-on-year profitability was affected by the company's two-track strategy targeting both premium and mass-market segments, alongside a continued expansion in subscription and online businesses.
LG expected the global home appliance market to remain challenging in the fourth quarter on the back of sluggish demand recovery and intensified competition.
The media entertainment unit, which manufactures TV, recorded an operating loss of 302.6 billion won (212.1 million dollars) on revenue of 4.65 trillion won (3.3 billion dollars).
The result was impacted by increased marketing costs to address intensifying competition and one-time expenses related to voluntary retirements.
The vehicle solution unit, which produces vehicle components, generated its record operating profit of 149.6 billion won (104.9 million dollars) with its record-high third-quarter revenue of 2.65 trillion won (1.9 billion dollars).
The eco solution division, which makes heating, ventilation and air conditioning (HVAC) products, won an operating profit of 132.9 billion won (93.2 million dollars) on revenue of 2.17 trillion won (1.5 billion dollars).
The revenue expanded slightly year-over-year, supported by stronger domestic sales and continued growth in online and subscription businesses, but the operating profit declined due to expanded investments. ■
