By News Reporter
Highest Quarterly Sales Ever As Mobile Division Officially Winds Down
SEOUL, July 29, 2021 — LG Electronics Inc. (LG) announced its highest quarterly revenues ever as the company continued to expand its market share for premium home appliances and consumer electronics outside of South Korea. Worldwide consolidated revenues of KRW 17.11 trillion (USD 15.26 billion) rose 48.4 percent from the second quarter a year ago. Second-quarter 2021 operating profit increased 65.5 percent from last year to KRW 1.11 trillion (USD 992.08 million). Results for the LG Mobile Communications Company, which officially winds down at the end of July, are considered discontinued operations and are no longer included in quarterly earnings reports.
The LG Home Appliance & Air Solution Company reported revenues in the second-quarter of KRW 6.81 trillion (USD 6.08 billion), a healthy increase of 32.1 percent from the second quarter a year ago. Operating profit grew 6.8 percent from last year’s second quarter to KRW 653.60 billion (USD 582.75 million), mainly driven by stronger sales in markets outside of South Korea and improved resource management, although costs are expected to increase as raw materials become scarcer while the pandemic-impacted world begins to return to normal. Product competitiveness and operational efficiencies are expected to help LG maintain sales and profit momentum for major appliances in key markets.
The LG Home Entertainment Company grew its revenues to KRW 4.04 trillion (USD 3.60 billion) in the second quarter, a substantial 79.1 percent increase compared to the same period last year. Operating profit soared to KRW 333.50 billion (USD 297.35 million), an increase of 216.4 percent year-on-year thanks to the growing popularity of premium OLED TV products and the recovery of the global TV market, which was negatively affected last year due to retail store shutdowns. With the price of TV panels continuing to rise, LG’s Home Entertainment strategy will center on growing the premium TV segment and nimble inventory management.
The LG Vehicle component Solutions Company achieved second-quarter sales of KRW 1.88 trillion (USD 1.68 billion), a significant increase of 106.5 percent from the same period of 2020 as a result of the recovering automotive sector and increase in demand for electric vehicle (xEV) parts. The company experienced an operating loss of KRW 103.20 billion (USD 92.01 million) as the price of automotive semiconductors increased dramatically during the quarter. Leveraging its expertise in advanced electric vehicle components, LG’s previously announced joint venture with Magna International, a new company called LG Magna e-Powertrain, was officially launched this week.
The LG Business Solutions Company recorded second-quarter revenues of KRW 1.69 trillion (USD 1.50 billion), a solid increase of 28.9 percent from a year ago largely driven by continued strong demand for PCs, monitors and gradual recovery of digital signage and hotel TVs. However, operating profit declined to KRW 61.70 billion (USD 55.01 million) because of higher price of key components such as LCD panels and solar wafers. Second-half plans for profitable growth hinge on continued B2B market recovery, coupled with stabilizing supply of major components and actively reducing costs.
2021 2Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2021. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,121.58 per USD.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on July 29, 2021 at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics before the call.
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By rami zapi
Hi all, i have 2018 LG webOS TV UK6540ptd , my tv and laptop both connected to same wifi. when i try connect my laptop for screen share this message come up to LG TV.
request screen sharing to your tv - Decline unable to connect for screen share
my laptop is windoes 10 64 bit
anyone can help me fix this issue.
I have LG smart TV i activated prime video app and I found for all movies there is no Arabic subtitles , while in phone app the Arabic subtitles for the same movies are there, so why app in smart TV has no Arabic subtitles ?
and how i can fix this if it is related to TV sittings?
By News Reporter
The last year and a half have been the ultimate test of resilience for everyone and HR at LG has been at the forefront of managing these difficult times. Throughout the pandemic, the HR team navigated new ways for employees and management to work as the company has been forced to rethink and adapt to the new environment.
Here at LG, the health and safety of our employees are our highest priorities. In this regard, we have always led by example such as the time we made the difficult decision to be the first multinational company to , the largest trade show in the industry, at the start of the pandemic as we felt it was the only way of ensuring the safety of our employees, customers and partners.
Since early last year, LG’s HR teams across the globe have been reinforcing business and organization sustainability as well as continuous internal communication and transparency at all levels. It is this close alignment in direction that has allowed HR to act swiftly and provide invaluable support across the organization and to our valued employees since the very beginning.
To provide the best working environment possible, aligning LG’s HR leaders around the world immediately proved vital, with constantly open and transparent communication making this all possible. To guarantee that our global HR teams were on the same page, we created specific communication channels to deliver video presentations on the direction of our global HR strategy as well as employing more frequent virtual face-to-face discussions with HR leaders from around the globe.
As well as taking care of employees’ physical health, LG made an equal effort to support their psychological and mental health. In India, one of the countries hit particularly hard, we went above and beyond to support the physical and mental health of our staff. First step was to implement a Happy Calling system which involved our HR staff calling each employee every four to five days to check on their well-being and ensure that they and their families are safe and well looked after. This system allowed us to help employees from the privacy of their homes by accepting all questions and requests confidentially.
For global employees working from home, we wanted them to stay connected and collaborate as a team. To foster this, we hosted various online group activities including remote yoga classes, virtual lunches, happy hours and online cooking lessons for the whole family. We implemented various new programs because of our firm belief in the importance of human connections among employees. We have faith that these activities help our employees take on one of the most difficult times in modern history.
Our health and well-being initiatives are not entirely new as we have been carrying out such activities for some time. These activities were already in place to cultivate growth among employees all around the world, regardless of their location. As a purpose- and principle-oriented company, LG’s people management philosophy pursues personal and professional growth in every single aspect, including health and well-being.
As the global head of HR at LG, my focus has always been on supporting LG Electronics and its talented workers and preparing them for the future by transforming the way we work together, nurturing the talent and capabilities of our people so that we may succeed and grow together in a fast, innovative and highly competitive market.
The pandemic showed us the importance of this goal in all its clarity.
By Carlos Olave, LG Global HR Leader
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