Highest Quarterly Revenues in Company History Reflect
Strong Demand for Premium LG Home Appliances and TVs
Jeddah: LG Electronics Inc. (LG) today announced third-quarter 2021 consolidated revenues of KRW 18.79 trillion (USD 16.23 billion), an increase of 22 percent from the same quarter last year and the highest quarterly revenue in the history of LG Electronics. Profitability also was strong in the quarter but was partially offset by a one-time charge. Operating profit of KRW 540.7 billion (USD 466.99 million) was 49.6 percent lower than the third quarter the previous year, reflecting a provision of KRW 480 billion (USD 415 million).
The LG Home Appliance & Air Solution Company posted third-quarter 2021 revenues of KRW 7.06 trillion (USD 6.1 billion) with operating profit of KRW 505.4 billion (USD 436.51 million). Sales increased 14.7 percent from the same quarter last year, exceeding KRW 7 trillion for the first time on the back of strong growth in the Americas and Europe. Product competitiveness and operational efficiencies are expected to help LG maintain growth momentum although at a slower pace due to increasing raw material costs.
The LG Home Entertainment Company achieved third-quarter 2021 sales of KRW 4.18 trillion (USD 3.61 billion), 13.9 percent higher than the same period last year. This was the fourth consecutive quarter with revenues over KRW 4 trillion, driven in large part by steady growth in demand for premium products such as OLED and large-screen TVs in the key markets of North America and Europe. Operating profit of KRW 208.3 billion (USD 179.91 million) declined from the third quarter last year due to an increase in component prices such as LCD panels.
The LG Vehicle component Solutions Company recorded revenues of KRW 1.74 trillion (USD 1.5 billion) in the third quarter of 2021, an increase of 4.8 percent from the same period in 2020. A third-quarter 2021 operating loss of KRW 537.6 billion (USD 464.32 million) includes the one-time charge of KRW 480 billion related to General Motors’ recall of the Chevy Bolt EV. Although the industry saw an increase in demand for automobiles including EVs during the quarter, the global automotive market experienced significant disruption due to the shortage of semiconductors. In the fourth quarter, the company will focus on strengthening its global supply chain through greater collaboration with auto OEMs and other component providers.
The LG Business Solutions Company increased sales in the third quarter to KRW 1.69 trillion (USD 1.46 billion), up 13.9 percent from a year ago thanks to continued growing demand for information display products, PCs and monitors as well as the gradual recovery of the B2B segment. An operating loss of KRW 12.3 billion (USD 10.62 million) was caused by higher prices of major components including LCD panels, semiconductors and solar wafers as well as an increase in global logistics costs. In the final quarter of the year, the company plans to aggressively target the recovering B2B segment while improving product competitiveness and operational efficiencies.
2021 3Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2021. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1157.83 per USD.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on October 28, 2021 at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
About LG Electronics, Inc.:
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 75,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global sales of over USD 56 billion in 2020. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, automotive components and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over.