By Kwanwoo Jun

LG Electronics Inc.'s net profit rose 7.6% in the first quarter, driven by solid demand for televisions and home appliances.

The South Korean consumer-electronics giant said Thursday that it expects brisk sales of TVs and electronics goods to continue in the coming quarter to support its overall earnings for 2021.

First-quarter net profit was 1.169 trillion won ($1.05 billion), compared with net profit of KRW1.087 trillion in the same quarter a year earlier, the company said.

The result was well above a FactSet-compiled consensus forecast for net profit of KRW945.03 billion.

Revenue for the period rose 28% to KRW18.810 trillion, slightly above its own earlier forecast, and operating profit jumped 39% to KRW1.516 trillion, marginally missing its earlier forecast.

Solid demand for TVs and home appliances has been supported by extended periods of staying at home amid the Covid-19 pandemic, as lockdowns remain in place in many parts of the world.

The company said it expects its top-line growth to be strong this year, thanks to solid growth in its flagship TV and home-appliance units and burgeoning growth in its car-component segment.

LG Electronics is due to exit its unprofitable smartphone business in July after years of struggling to compete with industry leaders Apple Inc. and Samsung Electronics Co., as well as fast-growing Chinese rivals.

The phone business has been in the red for the past six years, with the accumulated losses exceeding $4.4 billion.

Market analysts largely view the company's pullout from its smartphone business as improving its business and financial health in the long run despite a near-term revenue setback.

LG Electronics plans to launch a joint venture with Canadian auto-parts maker Magna International Inc. in July, stepping up efforts to boost new growth drivers to fill the gap left by its phone-business exit.

For 2020, the company's earnings set records with net profit surging 11-fold and operating profit jumping 31%.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

04-29-21 0220ET