LG Electronics headquarters in Yeouido, Seoul (LG Electronics)
LG Electronics posted a record revenue of 62.3 trillion won in 2019, as the home appliances division spurt past the 20 trillion won milestone, according to its earnings report Thursday.
In the fourth quarter alone, the company notched 16.6 trillion won in revenue and 101.9 billion won operating profit, up 1.8 percent and 34.5 percent on-year, respectively.
At the same time, the company suffered quarterly net loss of 87.8 percent due to subsidiary LG Display’s flat performance, turning to the red.
The earnings report showed LG Electronics’ home appliance and air solutions division towed the company’s performance.
The H&A division posted the fifth-consecutive year growth last year, on the back of the company’s premium products line, LG Signature.
Its yearly revenue surpassed the 21 trillion won ($17.6 billion) mark for the first time, and a record 9.3 percent increase in the operating profit.
The company’s mobile communications division performance remained lackluster, however, bringing attention on how the new CEO Kwon Bong-seok will outline the business strategy for 2020.
The MC division cited sluggish sales of mass-tier smartphones in overseas markets for the decline in fourth quarter revenue.
A full-year operating loss of 1 trillion won reflected the increased marketing expenses to support the flagship devices, the company said.
The vehicle components solutions division posted an operating loss of 63.7 billion won due to the global slump of finished car market. Its revenue slid 3.1 percent on-year.
The business solutions division posted 12.5 percent revenue increase on the back of rising demand for light-emitting diode signage and high-output premium solar modules.
In an earnings conference, LG officials said they plan to improve on the smartphone business in 2020 by making timely supply of 5G products that are newly designed and reasonably priced.
The company said it will strive to expand the sales of its premium products, while improving cost efficiency through enhanced raw material costs and resources input.
Streamlining global manufacturing sites and modulizing are some of the strategies the company plans.
The officials forecast that the organic light-emitting diode TV sales will improve 30 to 50 percent in 2020 compared to the year before, and said that it will focus on the in-vehicle infotainment for the vehicle components division.
By Lim Jeong-yeo (email@example.com)