LG Electronics Surpasses Whirlpool in Q1 Sales of Home Appliances for 2 Consecutive Years, Regains Global No. 1 Position

[Asia Economy Reporter Ki-min Lee] LG Electronics has reclaimed the title of the "world's No. 1 home appliance company" by surpassing the U.S. Whirlpool in both first-quarter sales and operating profit for the second consecutive year.

According to industry sources on the 1st, Whirlpool announced that its sales for the first quarter of this year amounted to $4.325 billion (approximately 5.2 trillion KRW), with an operating profit of $260 million (approximately 316.9 billion KRW).

Earlier, on the 29th of last month, LG Electronics revealed that its H&A (Home Appliance & Air Solution) Business Division recorded sales and operating profit of 5.418 trillion KRW and 753.5 billion KRW, respectively, for the first quarter of this year. These figures exceed Whirlpool's sales and operating profit by approximately 200 billion KRW and 430 billion KRW, respectively.

Since 2017, LG Electronics' H&A Business Division has maintained the world No. 1 position in operating profit by surpassing Whirlpool, but last year was the first time it topped sales as well. LG Electronics' H&A Business Division led Whirlpool in sales during the first and second quarters of last year, though it lagged behind in the third and fourth quarters.

LG Electronics' H&A Business Division tends to perform strongly in the first half of the year, driven by sales of air conditioners and other products. In contrast, Whirlpool's performance typically improves in the second half due to the Black Friday effect, when home appliances are sold at discounted prices. On an annual consolidated basis, LG Electronics' H&A Business Division posted sales of 21.5 trillion KRW last year, while Whirlpool recorded 23.5 trillion KRW.

There is growing interest in whether LG Electronics' H&A Business Division can surpass Whirlpool in annual sales this year. While Whirlpool has maintained sales in the range of 23 to 24 trillion KRW for several years, LG Electronics' H&A Business Division continues steady growth by leading with premium new appliances such as dryers and the Styler clothing care system. The division's sales grew from approximately 17 trillion KRW in 2016 to 21 trillion KRW in three years, narrowing the gap with Whirlpool.

Additionally, the impact of the novel coronavirus (COVID-19) and high exchange rates have emerged as variables affecting the performance of LG Electronics' H&A Business Division and Whirlpool this year. Since over 50% of Whirlpool's sales come from the U.S., it is expected to be more affected by COVID-19 compared to LG Electronics' H&A Business Division, whose U.S. sales proportion is around 20%. If exchange rates remain at current high levels, the conversion of dollar sales into Korean won will increase, potentially benefiting Whirlpool.

This content was produced with the assistance of AI translation services.