LG Electronics profit falls as TV demand slumps, tariffs bite

Published 25/07/2025, 09:20
© Reuters

Investing.com -- LG Electronics reported a drop in second-quarter earnings as its television segment faced weak demand and higher marketing costs, while U.S. tariffs increased operating expenses.

The South Korean consumer-electronics company saw its net profit decrease 3.1% year-over-year to 609.70 billion won ($444.1 million) for the April-June period, the company announced Friday. Despite the decline, this figure exceeded analysts’ expectations of 267.45 billion won, according to FactSet data.

Revenue fell 4.4% to 20.735 trillion won, while operating profit dropped more significantly, declining 47% to 639.40 billion won. These results were largely consistent with LG’s preliminary estimates.

LG specifically cited its television segment as facing challenges from sluggish consumer demand alongside higher marketing expenses. The company also pointed to increased cost burdens from tariffs implemented under the Trump administration and rising logistics expenses as factors that negatively impacted profitability.

The company’s stock has underperformed compared to the broader South Korean market in 2025, falling approximately 7% while the benchmark Kospi index has gained more than 30%. Shares closed 1% lower on Friday.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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