By Kwanwoo Jun

LG Electronics Inc.'s third-quarter net profit slumped 20% despite its quarterly revenue record, as General Motors Co.'s recall over faulty LG batteries took a heavy toll on earnings.

The South Korean home-appliance giant supplied battery modules for GM's Bolt electric vehicles, which had to be recalled for a risk of batteries catching fire due to manufacturing defects.

Net profit was 516.50 billion won ($440.6 million), compared with KRW649.20 billion in the year-earlier period, LG Electronics said Thursday. The result was above a FactSet-compiled consensus forecast for net profit of KRW482.76 billion.

Its revenue rose 22% to a quarterly record of KRW18.787 trillion, marginally higher than the company's earlier preliminary forecast.

But its operating profit dropped 50% to KRW540.70 billion, which matched the company's earlier preliminary forecast, feeling the pinch from the provisioning cost for GM's recall.

LG Electronics said it set aside KRW480 billion in the third quarter--on top of KRW235 billion in the second--as a provision to cover GM's expanded recall of Bolt vehicles.

Solid growth in home-appliance and television segments largely drove the company's strong revenue growth, supported by the pandemic-driven boom in demand for IT products at home.

Demand for electronic goods and appliances at home may turn softer, some analysts say, as vaccinated workers are returning to offices and component shortages are weighing on global supply chains.

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

(END) Dow Jones Newswires

10-28-21 0255ET