BUSINESS S.Korea's LG Electronics posts record earnings in 2020

BUSINESS

S.Korea's LG Electronics posts record earnings in 2020

Xinhua

15:24, January 29, 2021

The picture shows the headquarters of LG electronics in the northern Italian city of Milan on January 3, 2020. (Photo: AFP)

SEOUL, Jan. 29 (Xinhua) -- LG Electronics, South Korea's tech giant, posted record earnings last year thanks to robust sale of consumer electronics, the company said Friday.

Consolidated operating profit logged a new high of 3.2 trillion won (2.9 billion U.S. dollars) in 2020, up 31.1 percent from the previous year.

Revenue rose 1.5 percent to reach a fresh high of 63.26 trillion won (56.6 billion U.S. dollars). Net income amounted to 2.06 trillion won (1.8 billion U.S. dollars) last year, surging from 179.9 billion won (160.7 million U.S. dollars) tallied in the prior year.

The company said in a statement that the record-setting profit was driven mainly by higher sales of premium home appliances and organic light-emitting diode (OLED) TVs as well as strong growth in vehicle component solutions.

The home appliance & air solution division recorded an operating profit of 2.35 trillion won (2.1 billion U.S. dollars) on revenue of 22.27 trillion won (19.9 billion U.S. dollars) in 2020. Both the revenue and profit hit new highs in the company's history.

The home entertainment unit logged an operating profit of 969.7 billion won (865.9 million U.S. dollars) on revenue of 13.18 trillion won (11.8 billion U.S. dollars) owing to strong sale of TVs in North America and Europe. The profit was up 22.9 percent compared to the previous year.

The mobile communications business registered an operating loss of 841.2 billion won (751.2 million U.S. dollars) on revenue of 5.22 trillion won (4.7 billion U.S. dollars). The loss was attributed to an increased marketing investment.

The vehicle component solutions unit posted a revenue of 5.8 trillion won (5.2 billion U.S. dollars), while the business solutions division logged a revenue of 6.01 trillion won (5.4 billion U.S. dollars).

During the October-December quarter, operating profit came to 650.2 billion won (580.6 million U.S. dollars), surging from 101.8 billion won (million U.S. dollars) a year earlier.

Revenue advanced 16.9 percent over the year to 18.78 trillion won (16.8 billion U.S. dollars) in the fourth quarter.

Net income reached 262.3 billion won (234.2 million U.S. dollars) during the fourth quarter, turning around from an operating loss of 849.8 billion won (758.9 million U.S. dollars) a year ago.

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