LG Electronics, home appliances sector… Quarterly sales exceed KRW 7 trillion for the first time

Whirlpool beats Whirlpool to become the world’s No. Total company sales in the third quarter were 18.78 trillion won

LG Electronics’ home appliance division surpassed 7 trillion won in quarterly sales for the first time in a single division. This year, it is expected to easily surpass Whirlpool in the US to become the world’s number one household appliance in terms of operating profit as well as sales.

LG Electronics announced on the 28th its consolidated results for the third quarter of this year. The home appliance business division recorded sales of KRW 7.61.1 trillion and operating profit of KRW 505.4 billion. It is the first time for LG Electronics to exceed 7 trillion won in quarterly sales as a single business division. It was higher than analysts’ expectations, which was in the late 6 trillion won range.

As interest in hygiene and health increased, dryers, stylers, and dishwashers sold a lot, and the LG Objet Collection, a premium home appliance, also gained popularity. LG Electronics announced that it showed double-digit growth rates compared to the same period last year in overseas markets such as North America, Europe and Latin America as the localization strategy was effective.

In the fourth quarter, LG Electronics announced plans to maintain double-digit sales growth compared to the same period last year by further strengthening its localization strategy, although in the fourth quarter competition will intensify and increases in raw material prices and logistics costs will put a burden on costs.

LG Electronics’ third-quarter sales surpassed its home appliance rival, Whirlpool, by about 650 billion won. It beat Whirlpool in sales for three consecutive quarters this year, leading by about 2 trillion won on an annual basis. LG Electronics has been ahead of Whirlpool in operating profit so far, but lagging behind in sales. However, this year, in terms of annual operating profit as well as sales, it was ranked first in the world for the first time in history.

As a whole, the company recorded 18.78 trillion won in sales and 540.7 billion won in operating profit on a consolidated basis. Although quarterly sales were the highest ever, operating profit fell sharply compared to the previous quarter as about 480 billion won in provisions for recalls caused by the GM electric vehicle bolt fire were reflected. In the Bolt EV, LG Energy Solution produced cells and LG Electronics’ modularized batteries were used.

Reference-www.khan.co.kr

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