LG Electronics has just announced its highest quarterly revenue of all time, as the company continues to expand its share of the premium home appliance and consumer electronics market outside of South Korea. demonstrates that the South Korean manufacturer, despite having left the smartphone market, remains strong in its other market areas.
Consolidated worldwide revenue of 17.11 billion Korean Won ($15.26 billion) increased 48.4% from the second quarter of the previous year. Operating profit from April to June 2021 grew 65.5% yoy to KRW 1.11 billion (US$992.08 million). The results of LG Mobile Communications Company, which officially ended in late July, are considered discontinued operations and are not included in the quarterly earnings reports.
THE LG Home Appliance & Air Solution Company reported revenue of 6.81 billion Korean Won ($6.08 billion) in the second quarter, a healthy 32.1% increase over the same period last year. Operating profit rose 6.8% yoy to KRW 653.60 billion ($582.75 million), especially driven by stronger sales in markets outside South Korea and a better management of resources, even though costs could still rise as raw materials become scarce while countries and producers impacted by the pandemic return to normal.
Product competitiveness and operational efficiency are expected to help LG maintain the sales pace and profit level of key equipment in key markets.
THE LG Home Entertainment Company increased its revenues to 4.04 billion Korean Won (US$3.60 billion) in the second quarter, a substantial growth of 79.1% compared to the same period last year. Operating profit soared to 333.50 billion Korean Won ($297.35 million), up 216.4% year-on-year thanks to the growing popularity of premium OLED TV products and the recovery of the market. global TV market, which negatively and significantly affected last year with the closure of retail stores.
With the price of TV panels continuously growing, LG’s Home Entertainment strategy is focused on the premium TV segment and on managing a fast inventory.
THE LG Vehicle Component Solutions Company reached 1.88 billion Korean Won ($1.68 billion) in sales in the second quarter of this year, growing a significant 106.5% compared to the same period in 2020 as a result of the recovery of the automotive sector and the increased demand for parts for electric vehicles (xEV). The company had an operating loss of 103.20 billion Korean Won ($92.01 million) as the price of automotive semiconductors increased dramatically during the quarter.
Building on its expertise in advanced electric vehicle components and the fruit of LG’s announced joint venture with Magna International, a new company called LG Magna e-Powertrain was officially launched this week.
THE LG Business Solutions Company recorded revenue of 1.69 billion Korean Won ($1.50 billion) in the second quarter of 2021, which equates to a solid growth of 28.9% over the same period last year, largely driven by the continued strong demand for PCs and monitors and the gradual recovery of digital signage and Hotel TV solutions. However, operating profit dropped to 61.70 billion Korean Won ($55.01 million) due to the higher price of key components such as LCD panels and solar wafers.
The second half of the year’s plans for profitable growth depend on the continued recovery of the B2B market coupled with the stabilization of supply of the main components and the active reduction of costs.