LG Electronics Achieves Record High Sales of 74.7 Trillion Last Year... Likely Surpassing US Whirlpool (Comprehensive)

[Asia Economy Reporter Jeong Hyunjin] LG Electronics has recorded its highest-ever sales exceeding 70 trillion KRW. Last year, strong sales of home appliances and TVs led to home appliance sales surpassing those of the US company Whirlpool for the first time ever, securing the 'throne' as the global number one.

On the 7th, LG Electronics announced in its preliminary earnings report that its consolidated sales for last year reached 74.7219 trillion KRW, a 28.7% increase compared to the previous year. This sales figure is the largest in history, marking the first time annual sales have exceeded 70 trillion KRW. Last year's operating profit was 3.8677 trillion KRW, down 1.0% from the previous year.

In the fourth quarter of last year, LG Electronics recorded quarterly sales of 21.0089 trillion KRW, the highest ever for a single quarter. LG Electronics stated that this is the first time quarterly sales have surpassed 20 trillion KRW. Operating profit for the fourth quarter was 681.6 billion KRW, a 21.0% decrease compared to the same period last year, due to cost increases from rising raw material prices and logistics expenses.

LG Electronics' record-high sales are attributed to the effectiveness of its sales strategy focused on premium home appliances and organic light-emitting diode (OLED) TVs, which have high profitability. LG Electronics has actively targeted the premium market last year, centering on home appliances such as the Objet Collection and OLED TVs.

Accordingly, the market expects that LG Electronics has surpassed its competitor, US-based Whirlpool, to become the global number one in home appliance sales on an annual basis for the first time. The cumulative sales of LG Electronics' H&A division, responsible for home appliances, reached 20.5841 trillion KRW in the first three quarters, exceeding Whirlpool by more than 2.2 trillion KRW. The fourth quarter sales forecast suggests that Whirlpool's sales may be about 100 billion KRW higher than LG Electronics', indicating that the gap of over 2 trillion KRW is unlikely to be closed.

The market also expects that LG Electronics' automotive components business recorded its highest-ever annual sales. However, due to production disruptions at automakers caused by semiconductor supply issues and rising raw material prices, operating profit is estimated not to have achieved a return to profitability.

In the securities sector, it is anticipated that LG Electronics will continue to benefit this year from increased sales and market expansion of OLED TVs with an enhanced lineup, new product launches from the H&A division in the first half of the year, and an increased share of premium home appliances. Additionally, as semiconductor component supply shortages gradually ease this year, the VS division is expected to return to profitability.

This preliminary earnings report is an estimate based on Korean International Financial Reporting Standards (K-IFRS). LG Electronics plans to announce its consolidated net profit and business division performance at an earnings briefing scheduled for the end of this month.

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