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Significant reduction in the deficit of the electrical material business … The mobile under consideration for sale expands in deficit
This year’s operating profit is expected to reach 4 trillion won … The battlefield of ‘strategic business’ is also expected to turn black
LG Electronics posted an operating profit of more than 3 trillion won for the first time in history due to demand for potty and zip-cocks for the novel coronavirus infection (Corona 19) last year.
Sales exceeded 63 billion won, with both operating profit and sales achieving the highest performance ever.
LG Electronics announced on the 29th that sales and operating profit were the highest since its inception, with sales of 63.262 billion won and operating profit of 3.195 billion won as a result of last year’s consolidated management performance.
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 exceeds 3 trillion won.
Sales exceeded 60 billion won for 4 consecutive years.
LG Electronics announced on the 29th that sales and operating profit were the highest since its inception, with sales of 63.262 billion won and operating profit of 3.195 billion won as a result of last year’s consolidated management performance.
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 exceeds 3 trillion won.
Sales exceeded 60 billion won for 4 consecutive years.
In the fourth quarter of last year, it posted 18.78 trillion won in sales and 6.5 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 last year (sales of 16.612 billion won and operating profit of 111.8 billion won), and sales they are the highest in all quarters.
LG Electronics achieved the highest performance last year thanks to its flagship TV and home appliance divisions.
Sales of consumer electronics and televisions increased as demand for suppressed (suppressed) and zipcocks increased due to the non-face-to-face (contactless) routines caused by Corona 19.
In particular, sales of premium new appliances, such as laundry managers, dryers and dishwashers, were booming. H&A alone posted 22 trillion won in sales and an operating profit of 2.2 trillion won last year.
The annual operating margin (10.6%) also registered double digits for the first time.
TVs, which were somewhat sluggish in 2019, also helped improve performance as sales volume increased, primarily for premium TVs like OLED, with sales recovering 4 trillion won in 8 quarters in Q4. past.
The mobile division (MC), which is currently reviewing various restructuring plans, including the sale, was sluggish even in 4Q.
As premium smartphone sales declined and supply of chipsets installed in 4G smartphones was disrupted, sales reached just 1,385 trillion won and operating loss in the fourth quarter increased from the third quarter to 248 billion won. won.
On the other hand, the Automotive Electronics Business (VS) division, which LG Electronics is growing as a future business, reduced its operating deficit in the fourth quarter to 2 billion won due to the recovery of the auto market in the second. last semester. year, improving the prospect of a turnaround this year.
The electronics division’s fourth-quarter sales also reached 1.91 trillion won, the second highest after the TV and home appliances divisions.
LG Electronics has the ambition to become a global electronics company by establishing a joint venture in the electric vehicle powertrain field in July in partnership with Magna International, Canada, the world’s third-largest auto parts manufacturer.
The Business Solutions (BS) division posted sales of KRW 1.58.5 billion and an operating profit of KRW 70.3 billion.
The stock market predicts that LG Electronics will achieve the highest performance this year, thanks to expectations of market recovery and economic growth following the expansion of the corona 19 vaccine.
Demand for premium TVs and appliances is expected to continue to increase, and the electronics business is expected to turn a profit this year.
Stock prices predict that LG Electronics’ sales this year will exceed 68 trillion won and operating profit will reach 4 trillion won.
There are many observations that the restructuring, such as the sale of the mobile division, will also play a positive role in improving LG Electronics’ earnings.
Regarding the mobile business, LG Electronics said: “It is time to make the best decision by calmly judging the current and future competitiveness” and “We are carefully examining the direction of business operations with all the possibilities open now.”
Park Kang-ho, an analyst at Daishin Securities, said: “The expected decline in sales from the sale of the smartphone business division will be offset by the growth of the electronic equipment business. Rather, the additional R&D costs D are added to electronic devices, robots and artificial intelligence (AI). It is expected to create a new identity as an integrated solutions company based on AI. “
/ yunhap news
