LG Electronics reported higher results for the fourth quarter, and a record operating profit for the full year, driven mainly by demand for premium home appliances and strong growth in vehicle component solutions. LG expects the global economy to normalize this year after the covid-19 pandemic, though slow economic recovery does remain a concern. The company said it plans this year to widely apply new technologies such as AI, 5G, IoT and mobility to many of its business areas.
Revenues for the quarter lifted 16.9 percent from the year before to KRW 18.78 trillion while the operating profit soared almost 540 percent to KRW 650.20 billion. For the full year, revenues rose to KRW 63.26 trillion from 62.3 trillion the year earlier. The operating profit jumped over 31 percent to a record KRW 3.20 trillion.
At the company’s mobile business, revenues for the quarter went to KRW1.39 trillion, up 4.9 percent from the year before but 9.2 percent lower on a sequential basis due to shortages of 4G chipsets and sluggish sales abroad for premium smartphones. For the full year, revenues amounted to KRW 5.22 trillion and the operating loss to KRW 841.20 billion, reflecting higher marketing investments for flagship devices, partially offset by fixed cost reductions due to manufacturing efficiencies. The company said recently that it was open to “every possibility” regarding the unit, which has been in the red since the second quarter of 2015.
At LG’s home entertainment company, revenues advanced 7.9 percent for Q4 to KRW 4.28 trillion, with the operating profit of KRW 204.50 reflecting increased sales in North America and Europe. For the full year, revenues went to KRW 13.18 trillion while the operating profit climbed 22.9 percent to KRW 969.70 billion.
