(LEAD) LG CNS Q3 operating profit up 15 pct led by AI, cloud biz growth

LG CNS, the IT arm of the LG Group, announced a 15 percent increase in its operating profit for the third quarter of the fiscal year, driven by strong performance in its artificial intelligence (AI) and cloud computing divisions. The firm's profit for July-September rose to 138.2 billion won (US$103.2 million), up from 120.4 billion won in the same period last year. Sales grew 9.3 percent to 1.66 trillion won, while net profit declined 21.1 percent to 83 billion won, largely due to unfavorable exchange rates.

The AI and cloud businesses, which saw a 9.3 percent sales increase, were the main contributors to the profit uplift. LG CNS intends to maintain these sectors as key pillars for enhancing competitiveness. To support this strategy, the company acquired around 380 billion won worth of tangible assets, including graphics processing units (GPUs), to establish AI factories and develop agentic AI services.

Additionally, LG CNS partnered with New York-based venture capital firm General Atlantic to jointly invest in ventures focused on corporate software and AI technologies.

In the physical AI sector, LG CNS is conducting on-site trials of its robot training and operation platform, PhysicalWorks. The company aims to strengthen collaborations with major global tech firms, such as Nvidia, Microsoft, and Amazon Web Services, to further advance its AI capabilities.