LG Releases Preliminary Earnings for Third-Quarter 2021
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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 News Reporter
SEOUL, Jan. 8, 2024 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the fourth quarter and full-year of 2023.
LG reported an annual consolidated revenue of KRW 84 trillion, marking the third consecutive year of achieving the highest annual revenue, and an annual operating profit of KRW 3.5 trillion. These figures demonstrate a resilient business performance, approaching the results observed during the prior period of pent-up demand, despite challenges posed by delayed demand recovery from the economic slowdown as well as heightened market competition.
The historic high in annual revenue can be attributed to the robust fundamentals of LG’s core businesses and the growth experienced in B2B sectors. Notably, the compound annual growth rate (CAGR) of LG’s revenue over the last three years stands at over 13 percent. Additionally, the annual operating profit demonstrated a solid performance, reaching levels comparable to the preceding year.
LG’s effective management performance in the face of a challenging external environment is particularly noteworthy, setting it apart within the industry. Strategic efforts to enhance the business portfolio, including the early identification of market turning points to drive high growth in B2B sectors, played a pivotal role. Business model innovation, such as diversifying from hardware-oriented businesses to platform-based service business, also contributed to maintaining stable profitability.
In the home appliance & air solution business, LG is expected to have achieved an annual revenue milestone of KRW 30 trillion. Strategic market approaches, such as expanding volume zone lineups while retaining premium leadership to address demand polarization, played a key role in this success. B2B expansion in areas like HVAC, components and built-in appliances further contributed to overall growth. Going forward, LG will concentrate efforts on strengthening core competencies in product and manufacturing competitiveness, while accelerating changes in business models, including direct-to-consumer (D2C) and subscriptions, to prepare for the future. The company will also accelerate efforts to evolving its smart home solutions, reflecting the value of “Zero Labor Home,” by expanding the lineup of home appliances embedded with operating systems.
The vehicle component solutions business is anticipated to have exceeded KRW 10 trillion in annual revenue within a decade of its establishment, becoming one of LG’s core businesses. The average operating rate of production facilities has surpassed 100 percent since last year, driving growth. Starting this year, LG will intensify efforts to secure capabilities in the evolving trend of software-defined vehicles while aiming for growth in volume. Leveraging differentiation technologies accumulated in home appliances and IT, the company plans to enhance in-vehicle experiences while accelerating the efficiency and synergy of the entire business, including EV components and headlamps.
Despite challenges in key markets like Europe, the home entertainment business experienced meaningful growth in webOS content and services. This year, the expansion of the webOS ecosystem will extend beyond TVs to encompass smart monitors, in-vehicle infotainment and other areas, further broadening the business scope. From a product perspective, LG will significantly strengthen both the top-tier OLED lineup and the QNED lineup, following a dual-track strategy to lead the premium market.
The business solutions company is concentrating on the early commercialization of key areas such as EV charging and robotics. As a leader in LG’s B2B business, the segment aims to accelerate the shift from supplying single products to integrating and providing adjacent solutions. With a significant proportion of new businesses within the organization, investments are prioritized for future preparations rather than short-term management performance.
It is important to note that these figures represent tentative consolidated earnings based on the Korean International Financial Reporting Standards and are provided as a service to investors before LG Electronics releases its final earnings results. The official announcement of confirmed results, including the net profit for the year 2023 and the management performance of each Company, is scheduled for later this month.
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By News Reporter
Second Highest Third-Quarter Revenues and Operating Profit
Driven by Home Appliances and Vehicle Solutions
SEOUL, Oct. 10, 2023 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the third quarter of 2023.
LG reported consolidated revenues of KRW 20.7 trillion and operating profit of KRW 996.7 billion in the third quarter of 2023, both the second highest third-quarter figures in the company’s history.
Driven by home appliances, the company’s major business and vehicle solutions, its future growth engines, LG accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023.
LG’s efforts to upgrade business portfolio to expand the proportion of its B2B businesses, including automotive parts and HVAC, based on its deep understanding and experience of customers accumulated through years in the consumer-facing business have also led to continued growth.
In addition to the rapidly growing B2B business, the company continuously boosted its B2C business by combining products with content and services and expanding high-demand lineups based on the competitiveness of premium products such as LG OLED TVs and LG Objet Collection.
In July, LG CEO William Cho announced his future vision to create customer value, secure future growth opportunities and transform into a smart life solution company that connects and expand spaces and experiences beyond home appliances. The positive results of the third-quarter despite the economic depression and maintaining growth momentum is evidence that the portfolio transformation to achieve the company’s future vision is progressing smoothly.
LG also made continuous efforts to improve business structure and apply digital transformation across the company to innovate customer experiences, which have led to the maximizing of efficiency of the entire value chain, including purchasing, manufacturing, logistics and sales.
The LG Home Appliance & Air Solution Company has seen significant growth in the B2B area with its HVAC solutions. The company aims to further expand its air conditioning business with heat pumps and ESS in response to the growing demand for eco-friendly and high-efficiency products in North America and Europe. And, launched in the third-quarter, LG ThinQ UP 2.0 – a smart home innovation that combines home appliances and subscription services – has already received positive responses from customers and is leading change in the home appliance paradigm.
The LG Vehicle component Solutions Company continued its rapid growth trend in the third-quarter based on an order backlog expected to reach KRW 100 trillion by the end of the year and stable supply chain management, with the pace of growth also accelerating. In terms of profitability, there is also an economic effect of scale due to the expansion of sales. The company is expected to exceed KRW 10 trillion in annual sales for the first time this year. LG is also speeding up the establishment of regional production bases in response to the growing demand to convert to electric vehicles from major global customers.
The LG Home Entertainment Company is accelerating its business transition from a product-based business to a media and entertainment platform as the content and service business continues to grow. To this end, in addition to expanding collaboration with various content providers, the company has recently started upgrading TV operating systems for the first time in the industry to expand the content experience of customers. The number of TVs powered by webOS, the foundation of the content and service business, is expected to reach 300 million units by 2026.
The LG Business Solutions Company continues to innovate customer experience with premium IT lineups such as commercial displays and foldable laptops that provide customized solutions, while also rapidly fostering the electric vehicle charging business, one of LG’s new growth engines.
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 News Reporter
Highest Second Quarter Revenue With
Steady Growth Based on Strong Fundamentals
SEOUL, July 7, 2023 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the second quarter of 2023.
LG reported revenues of KRW 19.9 trillion in the second quarter of 2023, the highest second-quarter revenue, with operating profit of KRW 892.7 billion, the second highest second-quarter operating profit in the company’s history.
The revenue reflects the company’s actions to fundamentally improve its business structure by continuously expanding the B2B segment, even as profitability was impacted by the challenging global economic conditions and intensifying competition in the market. Operating profit increased by 12.7 percent compared to the same quarter last year, reflecting continuous growth based on the company’s strategy to strengthen business competitiveness.
The LG Home Appliance & Air Solution Company recorded strong profitability on the back of increased sales of high demand products such as air conditioners and energy efficient heat pump-enabled products as well as energy storage systems.
Despite the challenging global economic conditions, the LG Home Entertainment Company is achieving meaningful growth of content and service businesses based on LG’s webOS smart TV platform. At the same time, the company’s Lifestyle Screens are expanding sales and driving the premium TV market.
The LG Vehicle component Solutions Company is continuing the growth momentum supported by high order backlog of auto parts and stable supply chain management. At the same time, the company’s growth was positively impacted by a stable business portfolio made up of the 3 key areas of infotainment, e-powertrain and lighting solutions. The LG Business Solutions Company is accelerating the expansion of the customer experience to discover potential customer demand by introducing the world’s first commercial television sets to feature Apple AirPlay technology support for hotel TVs.
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 News Reporter
Second Highest First Quarter Revenue With
Steady Growth Based on Strong Fundamentals
SEOUL, April 7, 2023 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the first quarter of 2023.
LG reported revenues of KRW 20.4 trillion, the second highest quarterly revenue, with operating profit of KRW 1.5 trillion, the third highest quarterly operating profit, in the first quarter of 2023.
Despite the impact of challenging global economic conditions, the record sales reflect the company’s radical improvement on effectively managing the business structure and operational method.
Most notably, it is significant that there was substantial increase in profitability this year considering the positive impact of the royalty income compared to the operating profit of first quarter last year. As for the business structure, the company’s automotive parts business is growing rapidly with its B2B segment expanding continuously. Non-hardware business areas, such as software platforms, content, services and solutions, as well as Online Brand Shop (OBS) are achieving significant growth.
Attributing to the company’s substantial records, LG is also supplying energy efficient products including heat pumps and Energy Storage System (ESS) that address customers’ needs. The company is also strengthening its mass-tier lineup in response to ever-changing market trends and maximizing customer value.
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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