LG Opens Its First U.S. Factory to Produce Advanced EV Chargers
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By News Reporter
Company Pushes Boundaries With Innovative Business Models
While Balancing Core Operations and Future Growth to Create New Opportunities
SEOUL, April 25, 2024 — LG Electronics Inc. (LG) announced first-quarter 2024 consolidated revenue of KRW 21.09 trillion and operating profit of KRW 1.33 trillion. The company’s home appliance sector demonstrated global leadership, achieving record-breaking revenue and double-digit operating profit margins. The EV components sector, a key driver of future growth, continued its steady expansion. Both the TV and business solutions sectors experienced year-on-year sales growth and returned profits compared to the previous quarter.
Despite navigating challenging macroeconomic conditions such as high commodity prices, volatile exchange rates, rising interest rates and delayed demand recovery, LG achieved its highest-ever total revenue for a first quarter. This milestone underscores the effectiveness of implementing sustainable business models like subscription services and leveraging growth opportunities in the promising B2B sector. LG’s emphasis on differentiating features such as AI, energy efficiency and customer-centric design has strengthened its competitiveness in the premium market. Furthermore, the strategic approach of offering diverse product lineups and flexible pricing structures enabled the company to successfully navigate polarized demand trends.
Operating profit surpassed KRW 1 trillion for the fifth consecutive year, showcasing LG’s strong performance in the face of intensifying market competition. The company’s focus on content/service businesses and direct-to-consumer sales via the Online Brand Shop (OBS) has fueled qualitative growth. Efforts to stabilize raw material and logistics costs, coupled with production location flexibility, have further bolstered profitability.
The LG Home Appliance & Air Solution Company generated first-quarter revenue of KRW 8.6 trillion and an operating profit of KRW 940.3 billion. This represents a notable 7.2 percent increase in revenue compared to the same period last year, setting a new record for first-quarter performance. Operating profits reached the second-highest level in the company’s history, with an operating profit margin of 10.9 percent, underscoring the company’s exceptional global competitiveness.
Driven by its core technologies, particularly in motors and compressors, LG’s home appliance business continues to innovate within a mature market landscape. With a commitment to industry leadership, LG is pioneering transformative initiatives such as product subscription services and advancing the concept of ‘Affectionate Intelligence’ appliances. These innovations are tailored to empathize with and address customer needs effectively. Moreover, LG is strategically expanding its B2B ventures, including HVAC and built-in solutions, to capitalize on emerging growth opportunities.
The LG Vehicle component Solutions Company reported first-quarter revenue of KRW 2.66 trillion and an operating profit of KRW 52 billion, reflecting an 11.5 percent year-on-year revenue increase. The ongoing conversion of backlog orders into revenue is progressing steadily. Despite ongoing investments in overseas production sites to fulfill new orders and meet OEM demands, the company has maintained stable profitability, benefiting from economies of scale resulting from revenue expansion.
While there are expectations of a slight slowdown in the recent growth of EV demand, the demand for high-value-added EV components continues to rise steadily. LG is proactively addressing these market dynamics by developing a balanced portfolio, spanning from in-vehicle infotainment to powertrains and headlamps. The company aims to ensure sustained revenue growth and a stable profit base by actively adapting to these market shifts.
The LG Home Entertainment Company reported first-quarter revenue of KRW 3.49 trillion and an operating profit of KRW 132.2 billion. This represents a 4.2 percent increase in revenue compared to the same period last year, driven by a resurgence in TV demand in Europe and the successful launch of new 2024 models. The positive operating profit was fueled by the robust performance of the webOS content/service business, alongside traditional product sales. Despite challenges such as rising LCD panel prices, the company effectively managed profitability.
Looking ahead, a gradual recovery in the TV market demand is anticipated in the second half of the year. LG’s strategy focuses on leveraging its globally leading OLED TV and premium LCD QNED TV offerings while continuously enhancing the profitability of the webOS platform business, which is poised for rapid growth.
The LG Business Solutions Company reported first-quarter revenue of KRW 1.57 trillion, marking a 6.5 percent increase year-over-year, and an operating profit of KRW 12.8 billion. The launch of new LG gram laptops, featuring on-device AI and timed for graduation and enrollment seasons, garnered positive market feedback. In addition, sales of commercial display products, including electronic whiteboards and LED signage, experienced growth. While operating profit returned to positive territory from the previous quarter, there was a slight decrease compared to the same period last year, attributed to factors such as rising component prices and intensified competition.
This year, the overall IT market is expected to maintain similar demand levels to the previous year, with a slight growth anticipated in the commercial display segment. There is an expected increase in demand for high-spec IT products like gaming monitors and LED signage. LG aims to lead the market with strategic IT products tailored to customer needs, integrating gaming-specific features and OLED displays, alongside premium LED products. Efforts to proactively develop promising new businesses such as robotics and EV charging continue to drive future growth prospects.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on April 25, 2024, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants should pre-register online to receive a private PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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By News Reporter
Company Achieves Record-breaking
First-Quarter Revenues by Surpassing Boundaries Once Again
SEOUL, Apr. 5, 2024 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the first quarter of 2024, reporting a consolidated revenue of KRW 21.09 trillion and operating profit of KRW 1.33 trillion.
The company marks the highest first-quarter revenue in its history. The implementation of innovative business models such as subscriptions, along with the expansion of B2B operations, have proven to be crucial in overcoming challenges like the delayed recovery of market demand. From a product perspective, LG’s strategy to enhance the product range and price coverage of volume zone lineups, in response to market demand polarization, has demonstrated significant effectiveness. This strategy, combined with the company’s dedication to sustaining strong competitiveness in the premium market by emphasizing unique factors like AI, has played a substantial role in achieving the impressive figure.
The first-quarter operating profit has surpassed KRW 1 trillion for the fifth consecutive year since 2020. The company’s content and service business, which leverages its hundreds of millions of devices distributed globally as a platform, along with D2C sales, are driving qualitative growth and enhancing the contribution to the company’s operating profit. Measures such as resource allocation, stabilization of raw material and logistics costs and ensuring the flexibility of the global production operation system have also played a part in maintaining stable profitability.
In the home appliance & air solution business, new products like the LG Styler clothing care system, LG WashCombo All-in-One and LG WashTower have led growth, receiving positive market feedback. The strategy of expanding the volume zone lineup to cater to regional characteristics and shifts in demand in international markets has been successful. The company is also growing its B2B business, including HVAC, built-in appliances and component solutions.
LG aims to expedite the paradigm shift in home appliances by introducing subscription services that allow customers to choose appliances and product management services that suit their lifestyles. Also, as AI expands its role in customer electronics, the company is incorporating its Affectionate Intelligence into its devices and services, aiming to provide a unique customer experience that goes beyond basic AI, offering more thoughtfulness and empathy towards customers.
In the vehicle component solutions business, a secured backlog of orders is driving gradual sales growth. The order backlog is expected to exceed KRW 100 trillion in the first half of this year, increasing from the mid-90 trillion range at the end of last year. For In-vehicle Infotainment, a major contributor to sales, the emphasis this year is on bolstering software capabilities and broadening the spectrum of unique products. LG Magna e-Powertrain, having achieved profitability last year, is poised to accelerate growth by securing additional orders from the European and Asian markets. Concurrently, ZKW, a subsidiary specializing in vehicle headlamps, is strategizing to develop next-generation product capabilities while optimizing its business structure.
The home entertainment business is continuing to experience meaningful growth with the launch of new 2024 OLED TV lineup with enhanced AI performance as well as the expansion of webOS content and services. Starting this year, the company will actively deploy dual-track strategy driven by both the top-tier OLED lineup and the QNED lineup to lead the premium market. Furthermore, the webOS platform business will be developed into a scalable, high-profit business this year.
The business solutions sector continues to innovate customer experience through strategic products such as the new LG gram that comes with the latest on-device AI functions and gaming monitors. This year, the company will position itself with a competitive lineup of the commercial displays and continue to invest in future growth engines such as robots and electric vehicle charging, accelerating the early deployment of promising new businesses.
These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics’ final earnings results, including net profit. Details regarding each division will be announced officially later this month.
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By David Daul
My magic remote and my Roku remote stopped working for turning off power so I performed a factory reset after troubleshooting to get the remote working. I am now stuck at the 1st screen of the Factory Reset which says "Press the OK Button(wheel) on your remote." Well... this really stinks because the remote doesn't work!!! I have tried a USB mouse, a new magic remote, other LG Remotes with no luck. I have also tried using the button on the bottom of the tv. And, I contacted support which was just an exercise in redoing everything I had already tried... No Luck!!
This is a Nano Cell 55NANO81ANA which is basically just a big brick now since I cannot even use any of the inputs. Does anyone have a trick for getting past this initial screen???
Thanks for the help.
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By News Reporter
Company Expands Smart Factory Business
Based on AI Technology and Automation Solutions
SEOUL, Mar. 13, 2024 — LG Electronics (LG) is expanding its B2B business area and making significant strides into the global smart factory market by capitalizing on its expertise in constructing and operating intelligent autonomous factories.
Earlier this year, LG established the Smart Factory Business Division within its Production engineering Research Institute (PRI) and initiated the commercialization of its intangible assets, including smart factory construction technology and operational solutions. These innovations will be highlighted at MODEX 2024, the premier supply chain experience trade show, held in Atlanta, Georgia, USA.
LG’s smart factory business not only delivers production automation solutions but also incorporates AI-driven production planning, operations and the Digital Twin solution. The company aims to enhance customers’ manufacturing competitiveness by offering optimal solutions across all stages, from factory planning and design to construction and operation. Additionally, continuous improvement consulting services for factory upgrades will be available.
Aligned with LG’s vision of achieving a revenue of KRW 100 trillion by 2030, with the B2B sector targeting revenue exceeding KRW 40 trillion, the smart factory business serves as a cornerstone for LG’s B2B expansion. This endeavor is part of LG’s strategic focus on three key areas for future growth: accelerating non-hardware business models, expanding B2B businesses and developing new business domains.
Experienced in various aspects of the smart factory business, LG boasts extensive manufacturing expertise across diverse sectors such as home appliances, air solutions, TVs, vehicle components and robotics. What’s more, the company provides cutting-edge equipment and communication technologies, including big data-enabled integrated monitoring systems and predictive quality evaluation systems.
In addition to its manufacturing prowess, LG has secured essential digital technologies for building automated processes, including AI, big data and the Internet of Things (IoT). The company has also developed an intelligent production system where deep learning-enabled robots execute tasks guided by the company’s Digital Twin solution. This solution simulates actual machinery, equipment and logistics systems in a virtual environment, facilitating smooth integration and optimization of manufacturing processes.
These accomplishments have earned LG recognition for possessing world-class smart factory technology, encompassing hardware, software and automation solutions. Notably, the LG Smart Park in Changwon and the Tennessee factory in the USA were selected as Lighthouse Factories by the World Economic Forum.
With these capabilities, LG strengthens collaboration with various partners to expand the smart factory ecosystem. Following the signing of an MOU with LS ELECTRIC for the “Establishment of Smart Factory Business Cooperation System and Mutual Benefit Enhancement,” LG is forming unions with numerous global partners to advance smart factory technology through cloud and data analysis.
“In light of LG’s robust portfolio of smart factory solutions, we are committed to partnering with customers throughout their manufacturing journey by delivering optimal solutions across all stages, from planning and design to construction and operation,” stated Song Shi-yong, head of LG Electronics’ Smart Factory Business Division. He further elaborated on plans to introduce a Total Factory Offering System, which will provide a comprehensive solution in collaboration with LG and its global partners.
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By News Reporter
Company’s Latest Appliances Embrace Built-in Design,
Energy Efficiency and Smart Home Solution
SEOUL, Feb. 27, 2024 — LG Electronics (LG) is unveiling an evolved, fully-integrated home experience at the 2024 Kitchen & Bath Industry Show (KBIS) in Las Vegas. LG’s exhibit highlights a range of advanced residential solutions for a better life at home, including an expanded lineup of premium built-ins, energy-efficient appliances and eco-friendly heat pumps that enable home electrification. Also making an appearance is the LG Smart Home AI Agent, a futuristic and friendly innovation designed for a ‘Zero Labor Home.’
Expanded Signature Kitchen Suite Lineup With New Transitional Series Built-in Kitchen Package
Upon entering LG’s booth, visitors will encounter the Signature Kitchen Suite zone, which boasts a stylish selection of the premium built-in brand’s latest kitchen appliances. Among them is the new Signature Kitchen Suite Transitional Series built-in kitchen package, developed in response to the growing popularity of both transitional and contemporary kitchen design.
With subtle aesthetics that help complete a luxurious kitchen look, the Transitional Series offers a sophisticated and velvety matte-stainless-steel panel option and introduces thin yet easy-to-grip handles. The showcased appliances from the Transitional Series include the wine column fridge, under-counter wine cellar, under-counter drawer fridge, 30-inch fridge, dishwasher, 36-inch insert hood, induction oven and wall oven. Visitors can also see sleek solutions from other Signature Kitchen Suite lineups, including the panel-ready Pro Series collection and the brand’s space-efficient compact-size packages.
To underscore the brand’s ‘True to Food’ philosophy, LG is hosting cooking demonstrations in the booth’s cooking experience area. Expert chefs Nick, Austin and Jordan will be showing how easy it is to prepare delicious fare using some of the Signature Kitchen Suite’s latest built-in appliances.
Colorful InstaView Refrigerators for a Differentiated Kitchen Experience
What’s more, the company is introducing a new feature with InstaView refrigerators. Making its debut at KBIS, the new LG InstaView refrigerator allows users to change the color of the InstaView LED light (using the ThinQ app) to suit their preference. In addition, LG is displaying two new refrigerators with MoodUP that employ stainless steel feel material on surface, and a bottom-freezer fridge – with color-changeable door panels that can be easily managed with the LG ThinQ app.
New Simple Design for Contemporary Living
In the LG STUDIO zone, attendees can explore the expanded LG STUDIO Essence White Series, which prioritizes simple, understated design and offers a selection of colors for customizing the appliances’ knobs and handles. The Essence White Series removes unnecessary design elements to reveal the true essence of each appliance, delivering a timeless and simple look that’s always in style. Complementing any kitchen décor or design theme with its soft matte-white finish, the lineup comprises a wall oven, dishwasher, induction oven, Styler, WashTower, hood, gas cooktop and over-the-range microwave.
Customized, Energy-Efficient Smart Home Solutions for All
Besides its premium built-in lineups and comprehensive packages, LG is presenting customized home solutions that are tailored to the needs of both multi- and single-family households and are suitable for a wide variety of spaces. Across several display areas, LG shows how its state-of-the-art appliances are able to fit in effortlessly in an array of different housing situations. Moreover, visitors can check out LG’s impressive, new bath solution leveraging the latest technologies and premium design for a more comfortable and convenient bathroom experience.
Meanwhile, in the Sustainable Home Solution Zone, the company is showcasing its comprehensive home energy solution, which includes the LG Energy Storage System (ESS). Ready to help U.S. customers take advantage of upcoming energy efficiency rebate programs,1 LG’s solution offers user-friendly energy management encompassing production, storage, usage and conservation.
The ESS is easily integrated not only with LG’s air-to-water heat pump and inverter water heater, but also with the company’s home appliances featuring the acclaimed Inverter Heat Pump. Powered by LG’s exclusive core components and motors, the laundry solutions from LG WashCombo with Inverter HeatPump and a dryer with DUAL Inverter Heat Pump save time while using less energy than a vented model,2 helping to achieve home electrification.
Smart Home Solution for a Zero Labor Home
Highlighting the company’s ‘Zero Labor Home’ vision, the Zero Labor Home zone centers on LG’s ThinQ UP 2.0-compatible appliances incorporating the LG AI Appliance Chipset and designated operating system and the groundbreaking LG Smart Home AI Agent. Visitors can experience the differentiated value and unique capabilities of the Smart Home AI Agent and ThinQ through a range of real-life usage scenarios with LG’s home appliances. In a short video focusing on dinner preparation, the Smart Home AI Agent connects with the InstaView fridge and wall oven with built-in high definition camera to check available ingredients, recommend menus and provide cooking steps.
Revealed at this year’s CES, LG’s Smart Home AI Agent uses cutting-edge robotic and multi-modal technologies that enable it to move, learn and comprehend in order to help free people from the burden of household chores. Thanks to LG’s collaboration with Microsoft Azure Open AI, the Smart Home AI Agent is capable of engaging in more complex conversations with users.
“As people’s lifestyles become more diverse and complex, the demand for ultra-personalized solutions will continue to rise,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “The advanced home appliances and cutting-edge technologies we’re presenting at KBIS 2024 are designed to meet the needs of any and all users. We will continue to deliver customized, energy-efficient housing solutions that offer a differentiated home experience.”
Visitors to LG’s booth (West Hall #2343, Las Vegas Convention Center) at KBIS 2024 from February 27 to 29 can discover the company’s diverse portfolio of sophisticated home solutions for a better life.
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1 The Inflation Reduction Act (IRA), which will come into effect in the United States, provides nearly USD 400 billion to support clean energy and address climate change and USD 8.9 billion for Home Energy Rebates. ( link hidden, please login to view)
2 More energy efficient drying – efficiency rating as compared to the requirements for ENERGY STAR® qualification for standard electric dryers. Based on (November 2023).
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