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CNBC AI News – July 25, 2025 – LG Electronics today released its official financial results for the second quarter of 2025. The earnings reveal a mixed bag, with strength in some sectors offset by headwinds in others.
The South Korean tech giant reported Q2 revenues of 20.74 trillion Korean won (approximately $79.7 billion USD), a 4.4% year-over-year decline. Operating profit took a more significant hit, plummeting 46.6% to 639.4 billion Korean won (roughly $490 million USD).
LG Electronics attributed the downturn primarily to a confluence of challenges: sluggish global market demand, increased U.S. tariffs, intensified competition across its product categories, and persistent upward pressure on logistics costs. These factors created a challenging macroeconomic environment that impacted overall profitability.
Breaking down performance by business unit offers a more nuanced picture. The HS home appliance solutions, VS vehicle component solutions, and ES environmental solutions divisions all achieved their best-ever second-quarter results, signaling strong demand and execution in these strategic areas. However, the MS media and entertainment solutions segment, responsible for television sales, experienced an operating loss due to declining TV sales and a surge in marketing expenditures required to maintain market share.
Looking ahead to the second half of the year, LG Electronics aims to reinvigorate growth by capitalizing on opportunities arising from demand for high-efficiency product upgrades and by strategically expanding its product portfolio. Furthermore, the company is targeting emerging sectors like AI data centers, leveraging its expertise in thermal management technology as a key differentiator to unlock new revenue streams and drive future growth.
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