LG Electronics Inc. announced another record breaking sales year reflecting strong demand for premium home appliances such as LG SIGNATURE and high-growth, category-creating products.
The company reported revenues of KRW 62.3 trillion (USD 53.0 billion) in 2019. Full-year operating profits of KRW 2.44 trillion (USD 2.07 billion) were strong again in 2019 although 10 percent lower than 2018 due to increased investments in marketing and future technologies.
Fourth-quarter 2019 revenues of KRW 16.06 trillion (USD 13.65 billion) were 1.8 percent higher than the same period in 2018 and 2.3 percent higher than the previous quarter while quarterly operating income of KRW 101.8 billion (USD 86.5 million) was a sound 34.5 percent higher than the final quarter of 2018.
However, LG Electronics Inc.'s net loss widened significantly in the final quarter of 2019, largely due to its sizable stake in LG Display. LG's net loss for the quarter ended Dec. 31 was 849.80 billion Korean won ($720.4 million) compared with a KRW80.70 billion loss in the same quarter a year earlier, the South Korean consumer-electronics giant said Thursday.
The LG Home Appliance & Air Solution Company had a strong year, reporting record full-year 2019 revenues of KRW 21.52 trillion (USD 18.29 billion), an 11 percent increase from the previous year, and operating profit of KRW 2 trillion (USD 1.7 billion), its highest in history. Quarterly sales of KRW 4.62 trillion (USD 3.92 billion) – the highest fourth quarter in the company’s history – were nearly 7 percent above the same period the previous year due to healthy demand in North America and Europe while operating income of KRW 122.2 billion (103.86 million) increased 8.5 percent from the same period 2018.
The LG Home Entertainment Company reported full-year revenues of KRW 16.15 trillion (USD 13.73 billion), relatively unchanged from 2018 while operating income of KRW 980 billion (USD 833 million) declined from the previous year. Fourth-quarter 2019 sales of KRW 4.59 trillion (USD 3.90 billion) remained unchanged from the same period of 2018 and 18.7 percent higher than the previous quarter, resulting in an operating income of KRW 110 billion (USD 93.5 million) due in large part to increased marketing costs.
The LG Mobile Communications Company recorded 2019 revenues of KRW 5.97 trillion (USD 5.07 billion). Fourth-quarter sales of KRW 1.32 trillion (USD 1.12 billion) declined from the same period a year earlier due to sluggish sales of mass-tier smartphones in overseas markets. A full-year operating loss of totaled KRW 1.01 trillion (USD 858.34 million) reflected increased marketing expenses to support flagship devices. LG’s 2020 mobile business improvement strategy hinges on the introduction of new mid to premium 5G smartphones and continued cost-efficiency efforts.