LG Electronics posts 3 trillion won in profit in 2020

LG Electronics said on Friday that it has posted 63.26 trillion won in sales and 3.19 trillion won in operating income for the entire year of 2020.

It is a rise of 1.5% and 31.1%, respectively, on-year.

Stay-at-home and remote work trends led demand for home appliances, LG said. 

The home appliance business recorded 22.26 trillion won in sales and 2.35 trillion won in operating income. The business had an operating margin rate of 10.6%.

In the fourth quarter, LG posted 18.78 trillion won in sales and 650.2 billion won in operating profits, a rise of 16.9% and 538.7%, respectively, from the same time period in 2019.

The home appliance business contributed 299.6 billion won in operating profit in the quarter, a rise of 145.2% from the same time period a year ago, LG said.

The home entertainment business contributed 204.5 billion won in operating profit, arise of 102.5% on-year. LG said liquid crystal display (LCD) panel prices increased but this was the firm controlled cost by efficiency managing its resources. Premium TV sales also expanded in the quarter.

The mobile business posted 248.5 billion won in operating loss. It is the company’s 23 consecutive quarter of operating loss. LG said it saw premium smartphones sales decline and it had trouble procuring chip-set for 4G phones.

The vehicle solution business posted 2 billion won in operating loss. The company said it saw demand for car components recover in the second half of 2020.

LG also reiterated its stance on the mobile business, saying it will evaluate the business calmly and its future was open to all possibilities.