LG Electronics Expected to Lead Home Appliance Sales, Surpassing Whirlpool Again in Q2

Securities Market Expects LG Electronics 2Q Sales in the High 6 Trillion Won Range
Whirlpool Forecasted to Achieve Mid-5 Trillion Won Sales
LG Electronics Anticipated to Lead Annual Sales in Home Appliances

[Asia Economy Reporter Suyeon Woo] LG Electronics is expected to surpass Whirlpool again in the second quarter, following the first quarter, to achieve the number one position in global home appliance industry sales. This is due to the anticipated record-breaking growth in air conditioner sales amid the expected heatwave this summer, as well as LG Electronics' successful strategy of increasing the proportion of new home appliances and space interior appliances. As a result, expectations are rising that LG Electronics could also overtake Whirlpool in annual sales.

According to the securities industry on the 31st, LG Electronics' home appliance (H&A Business Division) performance for the second quarter of this year is estimated to be in the high 6 trillion KRW range in sales and operating profit in the high 700 billion to low 800 billion KRW range. On the other hand, Whirlpool's second-quarter sales, as estimated by domestic and international securities firms, are around 5 billion USD (5.6 trillion KRW).

If the performance is announced as projected, LG Electronics will surpass Whirlpool by about 1 trillion KRW in sales for the second quarter of this year, following the first quarter, achieving the number one position in global appliance industry sales. Previously, LG Electronics recorded its highest-ever quarterly sales (6.71 trillion KRW) in the first quarter, widening the gap with Whirlpool (5.96 trillion KRW) by more than 700 billion KRW.

Thanks to LG Electronics' sales growth in the first half of the year, there is speculation that it could surpass Whirlpool in annual sales for the first time ever this year. Since 2017, LG Electronics has posted operating profits exceeding Whirlpool's, but in terms of annual sales scale, it has not caught up with Whirlpool.

This year, LG Electronics is withdrawing from the mobile business division by July and focusing on future growth engines such as the automotive parts business and its 'cash cow,' the home appliance business, which is seen as increasing the growth potential of the home appliance division.

LG Electronics' investment in home appliances this year has grown by 40% compared to the previous year, reaching around 1 trillion KRW. Recently, to meet the surging demand for home appliances in the U.S. due to the COVID-19 pent-up effect, LG Electronics expanded facilities at its washing machine factory in Tennessee with an investment of 20.5 million USD (23 billion KRW).

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