LG Electronics said Monday that its third-quarter operating profit fell by more than 8 percent from a year earlier, mainly due to rising tariff costs and voluntary retirement expenses.
According to a regulatory filing, the South Korean tech giant estimated its operating profit for the July–September period at 688.9 billion won (US$482.6 million), down 8.4 percent from the same period last year. Revenue also slipped 1.4 percent to 21.87 trillion won. Data for net income was not disclosed.
Despite the decline, LG’s performance still exceeded market expectations by about 13.9 percent, according to a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency.
The company attributed the weaker results to higher tariff burdens resulting from changes in U.S. trade policy, as well as costs associated with its voluntary retirement program.
However, LG Electronics highlighted that its business-to-business (B2B) segment, particularly in electric vehicle (EV) components, showed strong growth during the quarter. Its traditional home appliance division also maintained solid market dominance and competitiveness.
Looking ahead, LG said it plans to expand its B2B and subscription-based businesses to strengthen long-term growth fundamentals. The company also expects the upcoming IPO of its Indian subsidiary to provide additional capital for restructuring its business portfolio and investing in future growth areas.
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LG Electronics will announce its final earnings report later this month.
