LG’s financial report from the fourth quarter and the whole year of 2020 – loss of 750 million dollars in the mobile business


LG’s financial report from the fourth quarter and the whole year of 2020 – loss of 750 million dollars in the mobile business

LG’s financial report from the fourth quarter and the whole year of 2020 – loss of 750 million dollars in the mobile business

News unit EMGblog.com : LG on Friday, January 29, 2021 (Bahman 10, 2019) its financial report from the last quarter and Full year 2020 ; According to this report, LG’s total revenue in the final quarter of 2020 will reach 18.78 trillion won ($16.76 billion), which is a 16.9% year-on-year increase compared to the same period last year, and an 11% increase compared to last season. . In the whole year of 2020, LG also achieved a revenue of 63.26 trillion won ($56.45 billion), which, despite the fact that it did not change much compared to the revenue of 62.3 trillion won last year, but its operating profit was 3.2 trillion compared to 2.44 trillion last year, an increase of 31.1%.

LG in the field Profitability in the fourth quarter of 2020 has also been very successful, and the company’s operating profit of 650.2 billion won ($580.19 million) has experienced an extraordinary increase of 539% compared to the same time last year. Of course, not all figures are positive for LG as expected, and especially according to the routine of the past several seasons, this company’s mobile business has caused a huge loss to LG. During the past few weeks, several news and rumors about LG’s decision to leave the mobile business have been published, to the extent that some news have mentioned trying to find a possible buyer and even finding this buyer. Of course, LG has consistently denied these reports and no official news has yet been provided about the sale of the mobile business. However, the situation of LG’s mobile sector is still pathetic and despite relatively attractive single stars like LG Velvet and

LG Rollable Phone

In the following, we will learn more about the performance details of each of these subsets.

LG Mobile Communications Company

Mobile Communications Department LG in the fourth quarter and the whole year of 2020 respectively to revenues of 1.39 trillion won (1.24 billion dollars) and reached 5.22 trillion won ($4.66 billion), which is a 4.9% increase and a 12.5% ​​decrease compared to the previous year, respectively. In the meantime, LG has also pointed to the decrease in revenue compared to the last quarter of 2020 and attributed it to the lack of 4G chipsets and the slow trend of selling advanced phones in foreign markets. The operating loss of this part for the whole year of 2020 is equal to 841.2 billion won ($750.63 million), which although it is a lower figure compared to the operating loss of 1.01 trillion won last year, it still imposes a huge loss on this group. LG considered this loss as a reflection of the increase in marketing costs to support flagship devices, which, of course, was partially offset by the reduction of fixed costs due to productivity in the production process.

Home appliance company and LG air conditioners

LG’s most profitable portfolio, the home appliances and air conditioners division, achieved a record-breaking revenue of 22.27 trillion won ($19.87 billion) in 2020, an increase of 3.5 percent compared to last year. Is. The amount of operating profit of this group has also been announced by recording another record of 2.35 trillion won ($2.1 billion), which has experienced an acceptable increase compared to 2 trillion won last year. LG attributed the success of this subset to the increase in sales of new home appliance categories and home appliance rental business in South Korea. This collection has also been very successful in the fourth quarter and its revenue of 5.54 trillion won ($4.94 billion) with a 20% annual increase and double-digit growth in the markets of South Korea, North America and Europe, is the highest income generation rate of this sector among all the fourth quarters. It has marked the history of LG.

LG Home Entertainment Company

LG in the home entertainment sector in the whole of 2020 has a revenue equal to 13.18 trillion won ($11.76 billion) and an operating profit of 969.70 billion won (865.29 million dollars) achieved that despite the fact that according to >LG FY 2019 financial report both compared to the previous year (with revenue and profit of 16.15 trillion won and 980 billion won, respectively) , have faced a decrease, but LG speaks of a 22.9% increase in annual profit in this section! The sales amount of 4.28 trillion won ($3.82 billion) of this subset in the fourth quarter of 2020 also shows the same conditions, and while at the same time last year, in the fourth quarter of 2019, this subset had a higher income of 4.59 had announced one trillion, now LG is talking about a 7.9% increase in revenue compared to the fourth quarter of 2019. The operating profit of LG’s home entertainment division in the fourth quarter of 2020, of course, has seen a significant increase and has now reached 204.50 billion won ($182.48 million) from only 110 billion won in the previous year. LG attributed the increase to higher sales in North America and Europe.

LG Auto Parts Solutions Company

LG Auto Parts Solutions Company achieved revenues of 1.91 and 5.8 trillion won ($1.71 and 5.18 billion) in the fourth quarter and full year of 2020, respectively. According to LG, they have experienced an annual increase of 41.3 and 6.1 percent, respectively. LG attributes this position to the recovery of demand in key automotive markets such as North America and Europe, as well as more sales of new projects. Of course, this collection is still not profitable for LG and in the fourth quarter of last year it caused an operating loss of 2 billion won ($1.78 million) to the company. Of course, according to LG, this loss has decreased both compared to the previous season and compared to last year due to the increase in sales due to the recovery of market demand in the second half of last year and the improvement of cost management.

LG Business Solutions Company

Business Solutions Company LG in the fourth quarter and the whole year of 2020 achieved revenues of 6.01 and 1.51 trillion won, respectively, and its operating profit in these two periods was announced as 457.88 and 70.3 billion won, respectively. Is. LG has related the positive performance of this sector’s profitability in the whole of 2020 to the increase in demand for IT products related to the current market trend towards online work and education, and the decrease in seasonal profitability is also directly related to the higher price of main parts and “global logistics costs” from LG’s point of view. ” has it. LG’s prediction for the future of this business is the improvement of the information display market and the increase in demand and the improvement of the company’s solar panels business.

At the end, it should be noted that at the time of preparing LG’s financial report from the fourth quarter and the whole year of 2020, each US dollar is equal to 1,120.66 South Korean won.

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