LG Electronics Inc. reaped a major win from a yearlong pandemic crisis, performing its best-ever in the first quarter as pent-up demand gained traction in line with vaccine progress across the globe.

According to its earnings guidance for January-March period released on Wednesday, the home appliance giant projected a historic-high operating profit of 1.5 trillion ($1.3 billion), more than doubling from the previous quarter and gaining 39.2 percent from a year earlier.

Sales for the January-March period were estimated at 18.8 trillion won, 0.1 percent higher from last record number in the previous quarter and 27.7 percent against a year ago.

It outperformed market consensus of 1.2 trillion won in operating profit and 17.9 trillion won in sales, compiled by local financial data tracker FnGuide.

LG Electronics shares closed Wednesday 0.94 percent lower at 158,500 won.

The company releases finalized and detailed results at the end of the month.

TV and high-end home appliance sales as in 2020 would have driven its operation.

Analysts estimated LG’s home appliance division to deliver more than 800 billion won in income and 6 trillion won in sales. TV sales in the quarter were estimated to have surged 30 percent on year.

The mobile communication division the company is exiting would have delivered around 200 billion won loss in the past quarter.

LG confirmed on Monday it was officially folding the smartphone business on July 31 and shift its resources to future growth engines such as automotive parts and artificial intelligence technologies.

Its automotive electronics division is projected to have narrowed loss with expanded sales on the recovery in global car demand.

By Cho Jeehyun

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