LG Electronics said to have achieved in 2021 the highest annual income in its history, with annual sales of $63.16 billion. This 28.7% increase in revenue compared to fiscal year 2020 was mainly attributed to higher sales of premium appliances and OLED TVs.
The company’s operating profit of $3.27 billion for the period was essentially flat, down 1% from a year earlier.
LG also reported record sales in the fourth quarter, with revenue of $17.76 billion, an increase of 20.7% from the same quarter in 2020. Operating profit of $572.87 million in the quarter was down 21.4% from the previous quarter. same quarter of last year, as a result of higher costs of raw materials and global logistics.
“As challenging business conditions persist in 2022, LG remains on course to strengthen competitiveness by further improving its cost structure and continuing to expand the presence of its premium TVs and appliances in the global market,” the company said.
The LG Home Appliance & Air Solution Company division posted another record year with 2021 revenue of $22.92 billion, up 21.7% from the prior year, largely driven by strong performance in new home appliance categories such as hygiene products. Annual operating profit of $1.88 billion was 2.9% lower due to higher raw material costs and global logistics. Record fourth-quarter revenue of $5.52 billion was 17.7% higher than the same period in 2020.
The LG Home Entertainment Company reported 2021 revenue growth of 30.6% to $14.56 billion, with operating profit up 18.1% from the prior year of $929.68 million.
“This reflects LG’s success in responding to increased demand for premium TVs during the pandemic,” the company said. Revenue in the quarter of $4.21 billion was 16.4% higher than the prior year fourth quarter and 19.2% higher than the prior quarter due to growth in demand for premium and large-screen OLED TVs in key regions of the world. Europe and North America.
LG Vehicle component Solutions Company increased revenue by 24% in 2021 from 2020, to $6.08 billion. Revenue in the fourth quarter of $1.42 billion was down 12.3% from the same quarter a year ago. Under the cloud of uncertainty created by the new variant of Covid-19, the global automotive market experienced significant disruption due to a shortage of automotive semiconductors.
The LG Business Solutions Company division achieved 2021 revenue of $5.89 billion, an increase of 15.8% from the prior year, while higher material costs and supply chain challenges resulted in an annual operating profit of 121.98 million dollars. Fourth-quarter revenue was up 14% from the same period in 2020, to $1.46 billion on the back of strong demand for premium PCs and gaming monitors.
With information from Nicholas Lucas.
