In an announcement of last year’s business performance on the 29th, LG Electronics announced on the 29th that its sales and operating profit were both the highest since its inception, with sales of 63,2620 billion won and operating profit of 3,195 billion won.
This is an increase of 1.5% and 31.1%, respectively, compared to the previous year.
In particular, this is the first time that annual operating profit has exceeded 3 trillion won. Sales exceeded 60 trillion won for 4 consecutive years.
In the fourth quarter of last year, it recorded 18.78 trillion won in sales and 650.2 billion won in operating profit, the highest in the fourth quarter.
As such, LG Electronics was able to achieve the highest performance thanks to the household appliances and TV divisions.
This is because sales of both home appliances and TVs increased as demand for pent-ups (repressed) and Zipcock increased due to non-face-to-face routines caused by Corona 19.
In particular, as sales of premium new home appliances such as clothing managers, dryers, and dishwashers were strong, H&A alone recorded 22 trillion 27.1 billion won in sales and 2,352.6 billion won in operating profit last year.
The annual operating margin (10.6%) also recorded double digits for the first time.
TV sales in the fourth quarter of last year recovered 4 trillion won in eight quarters, and sales volume increased, centering on premium TVs such as OLED, contributing to improving performance.
The smartphone (MC) division, which is currently preparing for various business reorganizations including sale, recorded an operating loss of 248 billion won in the fourth quarter.
For the electrical equipment business (VS), the operating deficit decreased to 2 billion won during the same period.
For this year’s outlook, LG Electronics judged that expectations for market recovery and economic revitalization are growing as the Corona 19 vaccination begins and treatments are developed.
At the same time, he pointed out that there are low-growth risks, such as global uncertainties persisting and slowing recovery in the real economy due to exchange rate fluctuations, price fluctuations of raw materials and parts, and rising logistics costs.
Accordingly, LG Electronics plans to create growth and change based on customer value by incorporating core technologies such as artificial intelligence, 5G, Internet of Things (IoT), and mobility in all business areas this year. In particular, it plans to expand sales of premium products such as sanitary appliances, space appliances, and OLED TVs, and actively respond to product demand caused by non-face-to-face trends.
The H&A division plans to maintain profitability through timely response to market changes, maintaining sales growth, and improving cost structure and optimizing resource input. The HE business division has a strategy to increase sales and maintain profitability by expanding sales by focusing on premium products such as OLED TVs, nano cell TVs, and ultra-large TVs.
In addition, the VS business division is planning to lay the groundwork for a turnaround in the black, as the global automobile market is recovering and competition among companies in the connected and electric vehicle sectors will intensify.
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