The fourth quarter sales and operating profits are the highest ever… Electrical equipment business also reduced deficit
Growth will continue this year… Operating Profit of KRW 4 trillion
LG Electronics recorded an operating profit of over 3 trillion won for the first time in history despite the new coronavirus infection (Corona 19) crisis last year, achieving the highest performance ever.
In the non-face-to-face (untact) era caused by Corona 19, the increase in demand for’Zipcock’ led LG Electronics’ flagship home appliance and TV sales, which led to earnings growth.
LG Electronics announced on the 8th that the sales and operating profits both recorded the highest since its inception, with sales of 63,2638 billion won and operating profit of 3,1918 billion won, as a result of aggregating the provisional business performance on a consolidated basis last year.
This is an increase of 1.5% and 31.0% compared to the previous year, and in terms of sales, sales exceeded the previous maximum of 62.3 trillion won in 2019, and the operating profit exceeded the previous 2,73.3 billion won in 2018.
This is the first time that LG Electronics’ annual operating profit has exceeded 3 trillion won.
In the fourth quarter, it recorded 18 trillion 7826 billion won in sales and 647 billion won in operating profit.
It was slightly lower than in the third quarter of last year, but compared to the fourth quarter of 2019 (sales of 16.612 trillion won and operating profit of 111.8 billion won), it increased by 16.9% and 536.6%, respectively.
Sales and operating profit for this fourth quarter were the highest in the fourth quarter, and sales were record-high throughout the previous quarter.
The driving force behind LG Electronics’ record-breaking performance last year is the advancement of household appliances (H&A).
The industry predicts that the sales of premium new home appliances such as stylers (clothing dryers), dryers, washing machines, and dishwashers were booming due to the demand for corona pent-ups (repressed), and the industry is predicting that the company has achieved record-high operating profits of around 2.3 trillion won per year. .
Last year’s sales of the household appliances division were 22 trillion won, the highest since its inception.
It is reported that the operating margin of household appliances last year recorded the first double-digit at 10%.
Although there are variables due to changes in the exchange rate, the industry believes that LG Household Appliances has a high possibility of achieving the world’s No. 1 performance last year, surpassing its competitor Whirlpool in the US.
TVs, which were a bit sluggish in 2019, also helped improve performance as sales in the fourth quarter of last year recovered 4 trillion won in eight quarters, and sales volume increased, mainly for TVs such as OLED.
LG Electronics also unveiled a variety of new products, including the rollable TV’LG Signature All-Red R’last year, as well as the space interior home appliance brand’LG Objet Collection’.
Mobile (MC) was sluggish in the fourth quarter, but the electronics business (VS) division decreased its losses for two consecutive quarters from the third quarter to the fourth quarter.
Securities prices predict that LG Electronics will continue to perform well this year and achieve the highest performance, surpassing last year’s performance again.
This is because the demand for premium home appliances and TVs is expected to continue to expand due to the increase in demand for Zipcock as the Corona 19 incident continues this year.
Some predict that this year’s operating profit will reach 4 trillion won.
It is predicted that the electronics division, which has recently turned to growth, will turn to the black starting in the third quarter of this year.
LG Electronics’ electronics division has emerged as a new growth engine for the company by unveiling plans to establish a joint venture in the powertrain division with Magna International, Canada, the world’s third largest auto parts company.
/yunhap news