The brand claims that its home appliances and home entertainment business verticals registered highest annual profits in 2018
LG Electronics has announced year 2018 revenues of US$ 54.4 billion (KRW 61.3 trillion). It claims that sales in the year exceeded 60 trillion won for the second year in a row. The US$ 2.40 billion (KRW 2.70 trillion) in the year marked a 10 per cent increase from 2017 profit figures reflecting record profitability from home appliances and home entertainment products.
An official statement released by the brand read, “Fourth-quarter 2018 revenues of KRW 15.77 trillion (US$ 13.99 billion) were higher than the third quarter but 7 per cent lower than the last quarter of 2017 primarily due to lower sales of mobile products. As a result, fourth-quarter operating income declined to KRW 75.7 billion (US$ 67.1 million).”
LG Home Appliances and Air Solution Company
LG claims that its home appliances and air solution company reported US$ 17.17 billion (KRW 19.36 trillion) revenue in 2018. These figures represent an increase of nearly 5 per cent in profit from the previous year.
The brand’s official statement read, “Fourth-quarter revenues of US$ 3.84 billion (KRW 4.33 trillion) increased more than 3 per cent from the same period last year with sales in Asia and Europe holding steady despite exchange rate challenges in Central and South America and political uncertainty in the Middle East.”
The Korea-based brand expects that these segments will lead the company’s revenues again this year.
LG Home Entertainment Company
The LG Home Entertainment Company recorded revenues of US$ 14.37 billion (KRW 16.21 trillion) with profits of US$ 1.35 billion (KRW 1.52 trillion) in 2018. LG said that it intends to grow both revenue and operating profit by focusing on increasing sales of premium OLED TVs and large-screen Ultra HD TVs.
LG’s statement read, “Fourth-quarter 2018 sales of KRW 4.56 trillion (US$ 4.04 billion) were 6 per cent lower from the previous year but 23 per cent higher than the previous quarter due in large part to strong seasonal demand.”
LG Mobile Communications Company
The LG Mobile Communications Company reported 2018 revenues of US$ 7.08 billion (KRW 7.98 trillion) with sales in the fourth quarter totaling US$ 1.51 billion (KRW 1.71 trillion). LG’s mobile business vertical registered a decrease of 16 per cent from the third quarter.
Its official statement read, “Although the full-year operating loss increased to KRW 790.1 billion (US$ 700.65 million), the mobile division’s business structure showed improvement as a result of better material cost controls and overhead efficiencies based on the company’s platform modularisation strategy. In 2019, LG’s mobile division will push 5G products and smartphones featuring different form factors while focusing on key markets where the LG brand remains strong.”