LG Elec reports best sales for ¡¯21, income short of new record and expectations

[Photo by Han Joo-hyung]

LG Electronics reported its best revenue for fiscal 2021 while its operating income fell short of setting a new milestone as it declined versus last year when counting out money-losing mobile device division it had shuttered from the second half of last year.

In its earnings guidance for the fourth quarter and 2021, the Korean home appliance giant estimated an operating profit of 681.6 billion won for the October-December period, gaining 26.1 percent from the previous quarter, but off 21 percent from a year earlier.

Sales rose 11.8 percent on quarter and 20.7 percent on year to 21 trillion won.

For the full year, operating income totaled 3.87 trillion won, off 1 percent versus 3.9 trillion won minus mobile business division. But sales totaled 74.7 trillion won, up 28.7 percent to a new annual record. Upon sales estimate, the company may beat Whirlpool as the world¡¯s largest white goods maker in terms of sales.

Income came below the market expectations of 4 trillion won while sales were slightly higher than estimated 73.7 trillion won in compiling by local market tracker FnGuide.

The company will release its finalized and detailed earnings on Jan. 27.

LG Electronics shares ended Friday 1.85 percent higher at 137,500 won.

The mobile communication division that had been in red for 24 consecutive quarters was officially closed on July 31. Sales of premium TVs and home appliances are estimated to have led the robust fourth-quarter and full-year performance.

The home appliances division is estimated to have earned an operating profit of 2.31 trillion won, inched up 0.7 percent on year, with sales up 21.3 percent to 27.02 trillion won, according to Daishin Securities. The TV business is projected to have generated an operating profit of 1.09 trillion won, up 17.4 percent, with revenue up 30.8 percent to 17.25 trillion won.

According to a recent report from global technology industry tracker Omdia, global OLED TV shipments expanded from 3 million units in 2019 to 6.5 million units in 2021 and are expected to reach an estimated 8 million units worth $14 billion this year.

LG Electronics¡¯ OLED TV sales is projected to have exceeded sales of LCD TVs in the market of premium TVs with a price tag of above $1,500.

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