LG Becomes World’s First Auto Component Supplier to Meet Global Standard for Functional Safety and Cybersecurity
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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 News Reporter
With a 360-degree Rotatable Handle and Auto Screen Adjustment Feature, the Latest
CineBeam Model Delivers High-quality Content Consumption Anytime, Anywhere
SEOUL, Mar. 15, 2023 — LG Electronics (LG) is set for the global launch of the LG CineBeam Q (model HU710PB). The LG CineBeam Q will be available for pre-orders from March 18 with exclusive benefits.1 The global release will begin in South Korea this month and will roll out in other markets, including US, Canada, Australia, Germany, Spain, France, UK, several countries in Asia and the Gulf region from April. Furthermore, the innovative projector aims for further expansion into additional countries.
Unveiled at CES 2024, the LG CineBeam Q projector is designed to complement users’ lifestyles, offering maximum portability with its compact design featuring a 360-degree rotatable handle. Intended for seamless transitions between indoor and outdoor settings, the CineBeam Q caters to users seeking elevated entertainment experiences free from constraints of location.2
The LG CineBeam Q provides flexibility for effortless content consumption anytime, anywhere.2 Whether used as an educational aid for families or a movie screen for social gatherings, the versatile lifestyle companion integrates into any room or outdoor area. When not in use, the CineBeam Q projector acts as a chic interior accessory, complementing any space with its minimal design. Additionally, users can activate the Light Drawing function to enhance the ambiance of a space with captivating digital images. This image-mapping feature projects images onto the wall, elevating the room with tranquil mood lighting.
Extending beyond its portable design, the CineBeam Q refuses to compromise outstanding picture quality, projecting stunning 4K UHD resolution images up to 120 inches and delivering vibrant, vivid pictures with a remarkable 450,000:1 contrast ratio and 154 percent coverage (overall) of the DCI-P3 color gamut.
The CineBeam Q projector boasts versatile and convenient features that effectively solve portability issues associated with conventional projectors, which can be a hassle to set up and move around. Equipped with Auto Screen Adjustment, the auto-focus feature optimizes image placement and size, creating an immersive viewing experience in any space, while eliminating the inconvenience of the setup process.3 Further enhanced by the latest version of the intuitive LG webOS platform, viewers can watch all their favorite shows with seamless access4 to popular streaming services like Netflix, Disney+, Prime Video and YouTube.5 Additionally, it allows users to effortlessly share content from their smart devices via AirPlay 2 and Miracast.6
“The LG CineBeam Q stands out as a truly unique projector, not only for its exceptional picture quality and impressive visuals but also for its ability to seamlessly blend into any home environment as a stunning art piece,” said YS Lee, vice president and head of the IT business unit of LG Business Solutions Company. “Content lovers will be delighted by the portability of the projector lineup, which delivers unparalleled cinematic viewing experiences anytime, anywhere.”
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1 Benefits for pre-order purchase may vary by country.
2 The projector operates solely through external power sources and does not feature a built-in battery. It necessitates connection to a power cord or external battery. Also, the model requires space suitable for projection such as walls, ceilings and similar surfaces.
3 If the distance from the screen exceeds 2 meters or the angle of placement is over 25 degrees, the auto screen adjustment may not work properly.
4 Available when the device is connected to Internet or Wi-Fi network.
5 Many streaming apps available on webOS require a paid subscription. Support for specific streaming apps may vary by country. Users are required to have an account for the streaming services.
6 Available when the device is connected to Internet or Wi-Fi network.
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By News Reporter
Features Seamless Integration With LG StanbyME Screens’ UX/UI and Sound System
to Enhance Home Entertainment or Works Effectively as a Highly Portable Speaker
SEOUL, Mar. 8, 2024 — LG Electronics (LG) announces the global launch of the LG StanbyME Speaker (model XT7S), the company’s latest portable speaker which works in harmony with an LG StanbyME lifestyle screen or as a standalone speaker that can be taken anywhere.
Designed to enrich both indoor and outdoor entertainment, LG StanbyME Speaker’s compelling audio quality and remarkable versatility caters to the diverse lifestyles and preferences of today’s users. Ideal for design-conscious individuals who relish streaming content and music at home or on the go, this speaker hit the market in Korea and the U.S. and will be made available in more regions later.
Engineered to offer the complete entertainment experience when combined with a StanbyME screen, this speaker features seamless, intuitive pairing and control through the remote control that comes with the StanbyME screen. This allows users to effortlessly toggle their speaker and screen on and off with a single press, while also seamlessly connecting them via Bluetooth. LG StanbyME also boasts a dedicated widget with convenient one-stop control center and an overview of the speaker’s status.
To further elevate audio-visual pleasure through audio quality, LG StanbyME Speaker’s WOW Orchestra feature combines it with the StanbyME screen’s built-in audio system, creating a unified audio setup and delivering an outstanding sound experience. What’s more, LG StanbyME’s α (Alpha) 7 Gen 6 AI processor optimizes sound by content type, while the 20-millimeter dual tweeters on the StanbyME speaker deliver clear, highly detailed high frequency stereo sound. The dual passive radiator on this speaker also creates deeper, more compelling bass.
Offering multifaceted versatility, the all-new StanbyME speaker can seamlessly complement the StanbyME screen or be used as a standalone speaker anywhere, providing users with the remarkable level of flexibility that serves all their sound entertainment needs. Thanks to a dedicated cradle, the speaker attaches to LG StanbyME effortlessly, allowing users to place it in the perfect position for enhanced sound.
Moreover, with an IPX5 rating and up to 16 hours of playback, this portable speaker ensures consistent audio performance everywhere they go. With its compact and lightweight body (78-millimeter height, 326-millimeter width, 87-millimeter depth and 0.9 kilograms), LG StanbyME Speaker can be carried from one place to another with ease, while its ‘edge lighting’ feature offers eye-pleasing lighting effects that add a subtle yet visually captivating element to lift the mood and atmosphere of any setting or occasion.
LG StanbyME Speaker is currently available from LG.com website in Korea and the U.S. and is scheduled to roll out in other major markets worldwide.
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