LG Electronics’ Q2 OP down 46.6% amid U.S. tariffs, weak demand

(Han Joo-hyung)

LG Electronics Inc. saw its operating profit for the second quarter plunge by nearly 47 percent due to weak global demand and U.S. tariff measures.

LG Electronics announced on Monday that its operating profit stood at 639.1 billion won ($464.6 million) in the April-June period, down 46.6 percent from the same period a year ago.

Revenue reached 20.7 trillion won, down 4.4 percent during the same period.

“Consumer sentiment has not recovered in major markets, and the shift in U.S. trade policy that intensified in the second quarter led to higher tariff burdens and intensified market competition, creating an unfavorable business environment,” said an official from LG Electronics. “Rising logistics costs also contributed to the poor performance.”

The TV business was hit particularly hard.

LG Electronics pointed to weakened global demand, surging LCD panel prices, and higher marketing expenses as major drags on profitability.

The outlook for the second half of the year remains uncertain, as the United States plans to impose an additional 50 percent tariff on steel-derived products like home appliances.

“Demand for TVs and appliances is not increasing, competition with Chinese firms is intensifying, and the tariff burden is mounting,” said an industry insider. “A tough road lies ahead for the time being.”