As the Covid-19 pandemic was wreaking havoc in 2020, LG Electronics sailed through, getting a revenue of 6.2 trillion shillings and an operating profit of 313 billion shillings, an increase of 31.1 percent compared to 2019.
Sales in the fourth quarter of 2020 of 1.8 trillion shillings represented an increase of 16.9 percent compared to the same period in 2019, and were 11 percent higher than the previous quarter.
Despite the impact of COVID-19, the quarter’s operating profit of 63 billion shillings increased significantly by 539 percent compared to the fourth quarter of 2019.
While COVID-19 and slow economic recovery remain concerns for 2021, LG expects the global economy to normalize as countries pursue sound fiscal policies and vaccine rollout to tame infections. In 2021, core technologies such as AI, 5G, IoT, and mobility will be widely applied to various LG business areas to drive growth.
The LG Home Appliance & Air Solution Company ended another healthy year with record 2020 revenues of 1.9 trillion shillings, an increase of 3.5 percent from the previous year, and a record operating profit of 231 billion shillings.
The latest results reflect increased sales of new appliance categories and the home appliance rental business in South Korea. Fourth-quarter revenue of 543 billion shillings was the highest fourth-quarter in the company’s history, an increase of 20 percent year-on-year with double-digit growth in South Korea, North America, and Europe.
The LG Home Entertainment Company reported 2020 revenues of 1.2 trillion shillings and an operating profit of 95 billion shillings, a 22.9 percent increase over the previous year.
Sales in the quarter of 420.4 billion shillings were 7.9 percent higher than the fourth quarter of 2019 and up 16.7 percent from the previous quarter. A quarterly operating profit of 20 billion shillings reflected increased sales in North America and Europe.
The LG Mobile Communications Company announced full-year 2020 revenues of 512.6 billion shillings. Fourth-quarter sales of 136.4 billion shillings were 4.9 percent higher than the same quarter of 2019 but 9.2 percent lower than the previous quarter due to shortages of 4G chipsets and sluggish sales of premium smartphones in overseas markets.
The full-year operating loss for LG Mobile Communications Company totaled 82.5 billion shillings, reflecting increased marketing investments to support flagship devices, partially offset by fixed cost reductions due to manufacturing efficiencies.
The LG Vehicle Component Solutions Company reported sales in 2020 of 569.8 billion shillings, a growth of 6.1 percent over 2019. Revenues in the fourth quarter of 188 billion shillings were 41.3 percent higher than the same quarter the previous year driven in large part by the recovery of demand in key automotive markets including North America and Europe and higher sales from new projects.
The modest fourth-quarter operating loss of 195.8 billion shillings improved year-on-year and quarter-on-quarter due to sales increases aligned with the recovery of market demand in the second half, as well as improved cost management.
The LG Business Solutions Company achieved 2020 revenues of 589 billion shillings with an operating profit of 44.8 billion shillings due to demand growth for IT products related to remote working and online learning. Fourth-quarter sales of 148.5 billion shillings were 4.8 percent higher than the same period of 2019, while quarterly operating profit was 6.9 billion shillings, lower than the previous year due to higher prices for major components and global logistic costs.