Input 2021.01.29 14:36 | Revision 2021.01.29 15:24
The fourth quarter of last year was also the largest
Driven H&A’s largest performance, operating margin in the first 10% range
Mobile “Best Choice” for 23 Consecutive Quarters
Operating profit increased 31.1% from the previous year and exceeded the first 3 trillion won on an annual basis. Sales increased 1.5% from the previous year, recording 60 trillion won for 4 consecutive years.
The H&A division led the highest performance. Thanks to the increase in sales of new home appliances represented by steam appliances such as stylers, dryers, and dishwashers, and the expansion of rental business sales, the company achieved the highest performance with annual sales of 22,2691 billion won and operating profit of 2,352.6 billion won, respectively. The annual operating margin was 10.6%, recording double digits for the first time.
The battlefield (VS) division also recorded the highest sales of 5,081.5 billion won last year. In early last year, automakers in North America and Europe suffered from the shutdown of their factories, but as the operation normalized in the second half of the year, demand for auto parts returned to a recovery trend.
In the fourth quarter of last year, sales and operating profit were 18,780.8 billion and 6502 billion, respectively. They increased by 16.9% and 538.7% respectively from the same period last year. Sales exceeded 18 trillion won for the first time in the previous quarter, reaching the highest record.
The H&A business division recorded 5,5402 trillion won in sales and 299.6 billion won in operating profit. The HE (TV) division has sales and operating profit of 4,283 billion won and 204.5 billion won, respectively. The MC (mobile) division has sales of 1.38 trillion won and an operating loss of 248 billion won. In the case of the VS business division, sales were recorded at 1.914.6 billion won and operating losses of 2 billion won. The BS Business Headquarters, which is in charge of business-to-business transactions (B2B), generated sales of KRW 1.5 trillion and operating profit of KRW 70.3 billion.
LG Electronics believes that expectations for an economic recovery this year are growing, and growth based on consumer value by incorporating key technologies such as artificial intelligence (AI), 5th generation mobile communication (5G), Internet of Things (IoT), and mobility in all business areas. And decided to make a difference.
For the MC division, which was recording a deficit for 23 consecutive quarters until the fourth quarter of last year, LG Electronics calmly judged its current and future competitiveness and decided it was time to make the best choice, leaving all possibilities open and carefully reviewing the direction of business operation. Said that they are doing.