Premium LG home appliances and OLED TVs contributed highly to 2020 revenues for the Electronics company. LG Electronics Inc announced 2020 revenues of Sh6.2 trillion ($56.45 billlion) and an operating profit of Shs 313 billion ($2.85 billion). This is an increase of 31.1 percent over 2019.
Also, thanks to a strong growth in vehicle component solutions, sales in the fourth quarter of 2020 of Sh1.8 trillion ($16.76 billion) represented an increase of 16.9 percent compared to the same period in 2019, and were 11 percent higher than the previous quarter.
Despite the impact of COVID-19, the quarter’s operating profit of Sh63 billion ($580.19 million) increased significantly by 539 percent compared to the fourth quarter of 2019. While the pandemic and slow economic recovery remain concerns for 2021, LG expects the global economy to normalize as countries pursue sound fiscal policies and vaccine rollout to tame infections.
2021 market prospects indicate that Core technologies such as AI, 5G, IoT and mobility will be widely applied to various LG business areas to drive growth.
The LG Home Appliance & Air Solution Companyended another healthy year with record 2020 revenues of Sh1.9 trillion ($19.87 billion) an increase of 3.5 percent from the previous year, and a record operating profit of Sh231 billion ($2.10 billion).
The latest results reflect increased sales of new appliance categories and the home appliance rental business in South Korea. Fourth-quarter revenue of Sh543 billion ($4.94 billion) was the highest fourth-quarter in the company’s history, an increase of 20 percent year-on-year with double digit growth in South Korea, North America and Europe.
The LG Home Entertainment Companyreported 2020 revenues of Sh1.2 trillion ($11.76 billion) and operating profit of Sh95 billion ($865.29 million), a 22.9 percent increase over the previous year. Sales in the quarter of Sh420.4 billion ($3.82 billion) were 7.9 percent higher than the fourth quarter of 2019 and up 16.7 percent from the previous quarter. Quarterly operating profit of Sh20 billion reflected increased sales in North America and Europe.
The LG Mobile Communications Company announced full-year 2020 revenues of Sh512.6 billion ($4.66 billion). Fourth-quarter sales of Sh136.4 billion ($1.24 billion) were 4.9 percent higher than the same quarter of 2019 but 9.2 percent lower than the previous quarter due to shortages of 4G chipsets and sluggish sales of premium smartphones in overseas markets.
The full-year operating loss for LG Mobile Communications Company totaled Sh82.5 billion ($750.63 million) reflecting increased marketing investments to support flagship devices, partially offset by fixed cost reductions due to manufacturing efficiencies.
The LG Vehicle Component Solutions Company reported sales in 2020 of Sh569.8 billion ($5.18 billion) growth of 6.1 percent over 2019. Revenues in the fourth quarter of Sh188 billion ($1.71 billion) were 41.3 percent higher than the same quarter the previous year driven in large part by the recovery of demand in key automotive markets including North America and Europe and higher sales from new projects.
The modest fourth-quarter operating loss of ($1.78 million) Sh195.8 billion improved year-on-year and quarter-on-quarter due to sales increases aligned with the recovery of market demand in the second half, as well as improved cost management.
The LG Business Solutions Company achieved 2020 revenues of ($5.36 billion) Sh589 billion with an operating profit of Sh44.8 billion ($408.51 million) due to demand growth for IT products related to remote working and online learning. Fourth-quarter sales of Sh148.5 billion ($1.35 billion) were 4.8 percent higher than the same period of 2019, while quarterly operating profit was Sh6.9 billion ($62.73 million), lower than the previous year due higher prices for major components and global logistic costs.
The market for information displays is expected to improve as global demand recovers 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.