LG Electronics Inc. (LG) announced a strong year with 2020 revenues of KRW 63.26 trillion (USD 56.45 billion) and an operating profit of KRW 3.20 trillion (USD 2.85 billion). This is an increase of 31.1% over 2019 which was driven by higher sales of home appliances and OLED TVs and strong growth in-vehicle component solutions.
Sales in the fourth quarter of KRW 18.78 trillion (USD 16.76 billion) grew 16.9% from the same period of 2019 and higher than the previous quarter by 11%. Despite the impact of COVID-19, the quarter’s operating profit of KRW 650.20 billion (USD 580.19 million) increased by 539% compared to the last quarter of 2019.
The company expects the global economy to normalize under the fiscal policies of world governments and the successful implementation of vaccinations. In 2021, technologies like AI, 5G, IoT, and mobility will be applied to various LG business areas.
The LG Home Appliance & Air Solution Company ended with a record 2020 revenues of KRW 22.27 trillion (USD 19.87 billion), an increase of 3.5% from the previous year, and another record operating profit of KRW 2.35 trillion (USD 2.10 billion). Results reflect increased sales of new appliance categories and the home appliance rental business in South Korea. Fourth-quarter revenue of KRW 5.54 trillion (USD 4.94 billion) was the highest fourth quarter in the company’s history, an increase of 20% year-on-year with double digital growth in South Korea, North America, and Europe.
The LG Home Entertainment Company reported 2020 revenues of KRW 13.18 trillion (USD 11.76 billion) and operating profit of KRW 969.70 billion (USD 865.29 million), a 22.9% increase of the previous year. Sales in the quarter of KRW 4.28 trillion (USD 3.82 billion) were 7.9% higher than same period in 2019 and up to 16.7% from the previous quarter. Quarterly operating profit of KRW 204.50 billion (USD 182.48 million) reflected increased sales in North America and Europe.
The LG Business Solutions Company achieved revenues of KRW 6.01 trillion (USD 5.36 billion) with an operating profit of KRW 457.88 billion (USD 408.51 million) due to the growth of demand for IT products related to remote working and online learning. Fourth-quarter sales of KRW 1.51 trillion (USD 1.35 billion) were 4.8% higher than the same period of 2019, while quarterly operating profit was KRW 70.30 billion (USD 62.73 million), lower than the previous year due to higher prices for major components and global logistic costs. The market for information displays is expected to improve as global demands recover while demand for IT products continues to grow. The company’s solar module business is expected to improve with increased demand for renewable energy in major developed markets.
LG Electronics’ unaudited quarterly results are based on IFTS (International Financial Reporting Standards) for the three-month period ending December 31, 2020.