Corona Pent-up and Zipcock Demand Explosion… Earn 2.3 trillion won annually in household appliances alone
Last year’s fourth quarter operating profit of KRW 650.2 billion… Mobile deficit expands, battlefield shrinks
LG Electronics posted an operating profit of over 3 trillion won for the first time in history on the back of demand for pent-ups and zip-cocks for the novel coronavirus infection (Corona 19) last year.
Sales exceeded 63 trillion won, and both operating profit and sales achieved the highest performance ever.
LG Electronics announced on the 29th that the sales and operating profits both recorded the highest since its inception, with sales of 63,262 trillion won and operating profit of 3,195 billion won as a result of the consolidated management performance of last year.
This is an increase of 1.5% and 31.1% compared to the previous year, and this is the first time that LG Electronics’ annual operating profit has exceeded 3 trillion won.
Sales exceeded 60 trillion won for 4 consecutive years.
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In the fourth quarter of last year, it recorded 18.78 trillion won in sales and 6500.2 billion won in operating profit, the highest in the fourth quarter.
This is an increase of 16.9% and 538.7%, respectively, compared to the same period of the previous year (sales of 16.612 billion won and operating profit of 111.8 billion won), and sales are the highest in all quarters.
LG Electronics achieved the highest performance last year thanks to its flagship home appliances and TV divisions.
Consumer electronics and TV sales surged as demand for pent-ups (repressed) and zipcocks increased due to non-face-to-face (untact) 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 won in sales last year and an operating profit of 2.35 trillion won.
The annual operating margin (10.6%) also recorded double digits for the first time.
TVs, which were somewhat sluggish in 2019, also helped improve performance as sales volume increased, mainly for premium TVs such as OLED, with sales recovering 4 trillion won in 8 quarters in the fourth quarter of last year.
The smartphone (MC) division, which is currently under consideration for various restructuring plans including the sale, remained sluggish even into 4Q.
The operating deficit in the fourth quarter increased from the third quarter to 248 billion won.
The electrical equipment business (VS) division, which is growing as a future business, reduced its operating deficit in the fourth quarter to 2 billion won, brightening the prospect of a turnaround this year.
/yunhap news
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