LG has achieved a record profit of $2.85 billion in 2020, which is 31.1% more than in 2019, while revenue was $56.45 billion, according to results published by the company.
These figures - which were achieved thanks to solid growth in home products, OLED TVs, and automotive solutions — were also reflected in the fourth-quarter results, in which sales reached $16.76 billion, up 16.9% year-on-year and 11% more than the previous quarter.
Despite the impact of COVID-19, profits in the quarter stood at $580 million, up 539% versus the same period in 2019. However, the consequences of the pandemic and the slow economic recovery remain a concern for the company heading into 2021.
However, LG is hopeful for the "normalization of the global economy" thanks to the determined fiscal policies of governments around the world and the progressive implementation of vaccines.
LG's results by business division
LG Home Appliance & Air Solution ended the year with profits of $2.1 billion, the highest in its history, while increasing revenue by 3.5 % compared to 2019, to $19.87 billion.
Over the last 3 months, revenue reached $4.94 billion, showing a 20% growth compared to the same period last year, and double-digit increases in South Korea, North America, and Europe.
Its home division achieved annual revenue of $11.76 billion and a profit of $865 million, 22.9% more than a year ago.
As for the department's quarterly results, revenue was $3.82 billion, up 7.9% from the fourth quarter of 2019 and up 16.7% from the previous quarter. These good figures are due to strong sales growth in North America and Europe, which increased profit to $181.5 million.
LG is considering exiting the smartphone market due to poor results.
Meanwhile, its mobile division posted a 2020 revenue of $4.66 billion, while sales in the fourth quarter reached $1.24 billion, up 4.9% from the same period last year, but down 9.2% from the previous quarter due to the supply of 4G chips and a slowdown in sales of premium smartphones outside South Korea.
Total losses for the year stood at $750.6 million due to investment efforts in the marketing of the company's flagship devices, partially offset by a reduction in fixed costs.
The automotive components division managed, for its part, to increase its revenues by 6.1% over 2019 to $5.18 billion for the year as a whole.
For the fourth quarter, revenue stood at 1.71 billion dollars, 41.3% more than in the same period of the previous year, thanks to the recovery of demand in key markets such as North America and Europe and the increase in sales due to the emergence of new projects.
This brings the total result for the quarter to a loss of just $1.78 million, an improvement over the previous quarter and the same period in 2019.
Finally, its business division achieved a profit of $408.5 million, thanks to the growth in demand for IT products for remote work and online teaching, as a result of COVID-19. Revenue reached $5.36 billion, about almost 4.42 billion euros.
For the last quarter, the division posted an operating profit of $62.7 million dollars, slightly lower than the previous year's figure due to price increases in manufacturing components. Meanwhile, revenues in the last quarter reached $1.35 billion, 4.8% higher than in the same period of 2019.
The technology company expects the digital signage market to improve in the coming year as global demand recovers and for sales of IT products to maintain their solid growth. They are also confident that the results of its solar division will continue to progress thanks to the consistent increase in demand for renewable energy production.
The Link LonkFebruary 01, 2021 at 10:24PM
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LG posts a record profit of €2.35 billion, up 31% from 2019 - Business Insider - Business Insider
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