Profit fell in the first quarter for South Korean electronic appliances manufacturer LG Electronics Ltd, but revenues increased, the company said on Friday.
The first-quarter operating profit has surpassed 1 trillion Korean won ($740 million) for the fifth consecutive year since 2020. Further, the company marked the highest first-quarter revenue in its history.
Preliminary first-quarter operating profit was 1.33 trillion won and consolidated revenue was 21.09 trillion won.
In the prior year's first quarter, the company had recorded operating profit of 1.5 trillion won and revenues of 20.42 trillion won.
In a statement, LG Electronics said: "The implementation of innovative business models such as subscriptions, along with the expansion of B2B operations, have proven to be crucial in overcoming challenges like the delayed recovery of market demand.
"From a product perspective, LG's strategy to enhance the product range and price coverage of volume zone line-ups, in response to market demand polarization, has demonstrated significant effectiveness.
"This strategy, combined with the company's dedication to sustaining strong competitiveness in the premium market by emphasizing unique factors like AI, has played a substantial role in achieving the impressive figure."
In the vehicle component solutions business, LG said a secured backlog of orders is driving gradual sales growth.
The order backlog is expected to exceed 100 trillion won in the first half of this year, increasing from the mid-90 trillion range at the end of last year.
In South Korea, LG Electronics shares closed Friday's trading at 95,900 won, up 1.70%.