LG Reports Highest Q3 Revenue In 60-Year History, Profit Up 44%

In short: LG Electronics on Friday published the preliminary earnings report for the three-month period ending September 30, revealing the highest revenue in its 60-year history which amounts to the equivalent of $13.64 billion, a $200 million increase year-over-year. The firm's profits reached some $660 million, up $205 million compared to the same period in 2017. The South Korean technology juggernaut is expected to publish its next consolidated financial report by the end of the month, which will also provide a breakdown of its earnings.

Background: Recent analyst estimates suggest that while LG's business as a whole will continue booming, its mobile unit is likely to remain in a slump. Last quarter, the company posted $13.9 billion in revenue and $715.1 million in operating income but not thanks to its smartphone division that recorded a $172 million loss during those three months. Earlier this week, LG Mobile President and Chief Executive Officer Hwang Jeong-hwan said he's expecting the unit to turn things around as early as next year, dismissing analyst concerns about the firm's declining performance. “Product trends change very quickly,” the industry veteran said earlier this week, shortly before the first anniversary of his appointment whose main goal was to revive LG Mobile's struggling operations.

Impact: LG's period of unprecedented growth doesn't appear to be nearing its end, though questions about the performance of its smartphone unit remain. The company is expected to become more aggressive in the mobile market moving forward, having recently confirmed it will be among the world's first manufacturers to release a 5G-enabled Android handset. The Seoul-based manufacturer is presently also experimenting with foldable smartphones, though it likely won't be commercializing such products prior to 2020 and even if it was to do so, the niche nature of bendable handsets is expected to prevent them from acting as major growth factors of any Android OEM in the near future.

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