LG Electronics Reports 46% Drop in Q2 Operating Profit Amid Tariff Pressures and Weak Consumer Sentiment
LG Electronics announced a dramatic 46% decline in second-quarter operating profit to 639.1 billion won ($491 million) compared to the same period last year, as the South Korean tech giant grappled with intensifying U.S. trade policies and weakening global consumer demand. Despite revenue growth, mounting operational challenges have significantly impacted the company's profitability across key business segments. Revenue Growth Masks Profit Decline While LG Electronics achieved revenue growth of 8.3% year-over-year to 21.7 trillion won in the second quarter, the sharp profit decline reflects the complex challenges facing global appliance manufacturers. The company attributed the disappointing performance to increased tariff burdens in key markets and widespread consumer hesitancy to make major appliance purchases. The Home Appliance & Air Solution (H&A) division, traditionally LG's profit engine, experienced the most severe impact. Sales of major appliances incl...