30% over the previous year ↑… 3rd sales history
Promotion of semiconductors, smartphones, home appliances, etc.
The rosy prospect of exceeding 50 trillion won this year
LG Electronics’ first 3 trillion won’surprise performance’
Samsung Electronics and LG Electronics endured the wave of the new coronavirus infection (Corona 19) last year, making good results side by side. Samsung Electronics made an operating profit of close to 36 trillion won, while both semiconductors and smart phones and other home appliance divisions were good on the rise of non-face-to-face (untact) demand, and LG Electronics surpassed 3 trillion won in annual operating profit for the first time ever.
Samsung Electronics announced on the 8th that, as a result of aggregating the preliminary results on a consolidated basis last year, its operating profit increased 29.46% from the previous year to 35.9 trillion won. Sales also increased by 2.54% year-on-year to 236 trillion won. It is the third highest sales volume ever since 2017 (239.58 trillion won) and 2018 (243.77 trillion won).
As of the fourth quarter of last year, it recorded 9 trillion won in operating profit and 61 trillion won in sales. This is an increase of 25.7% and 1.87%, respectively, compared to the same period last year. Although it did not fall short of the 3rd quarter when it recorded’surprise performance (earning surprise)’, it is a good performance. In 4Q, the fixed price of memory semiconductors such as DRAM and NAND and the won-dollar exchange rate fell, and smartphone sales also declined.
In the case of home appliance sector, overall, the’Bespoke’ series was promoted, and TVs also played a beneficial role in improving performance by selling more than 49 million units (based on Omdia count), which is an increase from 2019 (44.07 million units) annually.
Samsung Electronics’ earnings this year is expected to outperform last year. With the advent of the semiconductor supercycle (long-term boom) amid rising DRAM prices, there is also a rosy prospect that operating profit will exceed 50 trillion won. In particular, expectations are high for the growth of the foundry (semiconductor commissioned production) sector, which has recently been rapidly increasing in demand.
LG Electronics also compiled and announced provisional performance last year. The company achieved annual sales of 63,2638 billion won and operating profit of 3,191.8 billion won. Both sales and operating profit were all-time highs, up 1.5% and 31%, respectively, compared to the previous year. This is the first time that LG Electronics’ annual operating profit has exceeded 3 trillion won.
As of the fourth quarter of last year, sales and operating profit recorded 18,782.6 billion won and 647 billion won, respectively. This is an increase of 16.9% and 535.6%, respectively, compared to the same period last year.
LG Electronics’ record-breaking performance seems to have been attributed to the growth of premium home appliances, including organic light-emitting diode (OLED) TVs, as well as the improvement in profits in the electronics division. As the’zipcock’ trend is expected to continue this year, the growth of the home appliance business is expected to continue, so it is predicted to record the highest performance over last year.
Reporter Park Sejun [email protected]
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