Customers watching LG All-Red TV at home appliance store in Australia (11th, Yonhap News)

LG Electronics recorded record high sales on a quarterly basis in the July-September period. As a result, we dispelled concerns that the "home consumption" associated with the new coronavirus will settle down. However, operating income fell to half the level of the same period last year. This is the impact of the 480 billion won (approximately 45.7 billion yen) for the electric vehicle recall costs of General Motors (GM). ○ All Red TV Object Collection Double string LG Electronics posted sales of 18.7845 trillion won (approximately 1.789 trillion yen) and operating profit of 540.7 billion won (approximately 51.5 billion yen) in the third quarter of this year on the 12th. It was announced that it was tentatively tallied with what was raised. Compared to the same period last year, sales increased by 22.0% and operating profit decreased by 49.6%. The numbers to watch are quarterly sales. It surpasses the previous record of 17.8124 trillion won in the January-March period by nearly 1 trillion won. According to the analysis, home appliances and TV business supported sales. In the investment industry, it is estimated that the sales of LG Electronics' home appliances (H&A division) will approach 7 trillion won. This means that sales have exceeded 6 trillion won for three consecutive quarters this year. An official from LG Electronics explained, “In addition to the steady popularity of space interior appliances, the 'Object Collection,' sales of air conditioners have also increased due to the lingering summer heat.” The TV business (HE division) is also believed to have generated more than 4 trillion won in sales. It is an analysis that the premium product All Red (OLED) TV contributed greatly. At the beginning of the year, market research firm Omdia forecast 5.8 million All-Red TV shipments this year, but raised the forecast to 6.5 million at the end of last month. LG Electronics is the leader in the all-red TV market, with a global market share of around 70%. ○Most of GM's reserves are reflected It seems that LG Electronics has continued to be in the red in the electrical equipment (VS) business, which LG Electronics has set as its future goal. This is due to the impact of 480 billion won for GM's electric vehicle recall provision. A shortage of semiconductors for vehicles has also had a negative impact on the operating rates of major automakers. The industry expects the VS division to turn profitable in the fourth quarter of this year or the first quarter of next year. This is because the supply shortage of semiconductors for vehicles is easing. Most of the parts supply contracts that have been ordered at low prices in the past will also end this year. It is expected that the electric vehicle powertrain subsidiary ``Elsie Magny Powertrain'', which was launched in July this year, and the VS division will create synergies in earnest. The stock market expects LG Electronics to exceed 60 trillion won (approximately 5.7142 trillion yen) in annual sales for the first time this year. The annual sales record, excluding the smartphone business, was 58.1 trillion won last year. LG Electronics plans to announce detailed financial results, including consolidated net income and profits and losses by business unit, at the end of October. On the other hand, LG Electronics and LG Energy Solution announced on the same day that they had reached an agreement related to recalls with GM. The GM Chevrolet Volt's early-release car decided to replace all battery modules and packs. Recently produced vehicles will use diagnostic software to selectively change battery modules. The replacement cost is estimated to be around 1.4 trillion won. LG Electronics, a module manufacturer, and LG Energy Solution, a pack manufacturer, will each share the costs. LG Electronics reduced most of its expenses by setting additional reserves of 480 billion won in the third quarter after reflecting the reserve of 234.6 billion won in the second quarter. LG Energy Solution, which accumulated 91 billion won in the April-June quarter, plans to add 620 billion won in the July-September quarter. Reporter Son Hyun Suk