Tag Archives: LG

LG Elec poised to be world’s No. 1 home appliance seller in 2021

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[Photo by LG Electronics Inc.]

[Photo by LG Electronics Inc.]South Korea’s LG Electronics Inc. is poised to become the world’s top white goods seller this year as its half-year sales from home appliance business are estimated to have exceeded that of U.S. rival Whirlpool, and demand for its premium electronics brand LG Objet Collection is growing stronger.

According to industry sources on Sunday, Whirlpool, which is due to release its second-quarter results on Thursday, is estimated to have earned $5.05 billion in sales, up 15 percent from a year-ago period. When combining the first-quarter number, its half-year sales are expected to have reached 11.63 trillion won ($10.17 billion).

LG Electronics earned 6.71 trillion won ($5.85 billion) in home appliance sales in the first three months, already beating Whirlpool’s sales in the same quarter by 740 billion won. As its second-quarter sales are estimated at 6.80 trillion won, the total sales from LG Electronics’ home appliance division in the first six months of this year are estimated to be nearly 2 trillion won larger than that of its American rival in the same period.

This large sales gap between the two rivals in the first half of this year is expected to help the Korean appliance giant cement its lead in sales for full year this year, analysts said, adding that this year would be different from last year.

LG Electronics beat Whirlpool in sales by 480 billion won in the first half of last year but failed to maintain its lead against the U.S. electronics giant for full-2020 after Whirlpool earned 1.07 trillion won more than its Korean rival in the second half thanks to the year-end blowouts like Black Friday.

Thanks to the pent-up demand for high-end home appliances by global homebound consumers, LG Electronics saw double-digit sales growth in overseas markets – 59.4 percent in China, 43.5 percent in Europe, 31.9 percent in Central and South Americas and 28.8 percent in North America.

The sales growth was mostly driven by the premium electronics lineup LG Objet Collection. Nearly half of its buyers chose premium models. To meet the growing demand, LG Electronics plans to bring the premium lineup to more countries in Asia and Europe after the launch in China in May.

The Korean tech giant currently is going all-out to ramp up output. Its global shipments of refrigerators expanded 53 percent on year to 3.44 million units in the first quarter, and air conditioners up 43 percent to 4.12 million units.

LG Electronics has injected $20.5 million to expand its laundry machine output from the U.S. plant in Tennessee.

LG Winners again at Red Dot awards

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LG has been awarded 31 product design  awards  at this year’s Red Dot Award . Presented at CES 2021, LG’s designer appliances have been awarded 5 awards including InstaView door-to-door refrigerator, refrigerator and freezer pair, CordZero vacuum cleaner , air conditioner and Styler. “Among the most significant is the honor given to LG designer appliances in the Materials and Surfaces category for their implementation of color, material and finish (CMF) – explains the company -. Introduced as a bold take on conventional home appliances, LG’s designer appliances are a fusion of technologically advanced appliances with high quality materials that can be customized to meet each customer’s specifications. Materials such as stainless steel, glass, metal and Fenix – an innovative material with advanced coating technology developed by Arpa Industriale – are used to illuminate the refinement of each product in the collection ”. Other accolades include recognition for LG WashTower, a one-piece vertical laundry solution that frees up more floor space when handling large loads.UltraGear and the LG Gram were praised for their advanced and elegant design.

LG Electronics opens 1st premium shop in Latin America

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LG Electronics In, a major home appliance maker in South Korea, said Friday it has opened its first premium shop in Latin America in a move to further boost sales in the region.

LG Brand Shop for the South and Central American region is in Panama City, Panama, with a size of 470 square meters. Consumers can experience LG’s luxury home appliance brand, LG SIGNATURE, as well as its artificial intelligence and Internet of Things solutions.

The company said it has also opened an online shop for Latin American consumers so that they can easily purchase products amid the novel coronavirus pandemic.

LG said its premium brand shop in Panama will serve as a stepping stone for the company to promote its brand and that it will launch marketing programs dedicated to consumers in the region to better boost its presence.

LG currently runs some 1,400 premium stores

LG ANNOUNCES 2020 FINANCIAL RESULTS

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LG Electronics Inc. (LG) announced a strong year with 2020 revenues of KRW 63.26 trillion (USD 56.45 billion) and record-setting operating profit of KRW 3.20 trillion (USD 2.85 billion), an increase of 31.1 percent over 2019, driven primarily by higher sales of premium home appliances and OLED TVs as well as strong growth in vehicle component solutions.

Sales in the fourth quarter of KRW 18.78 trillion (USD 16.76 billion) grew 16.9 percent from the same period of 2019 and were 11 percent higher than the previous quarter. Despite the impact of COVID-19, the quarter’s operating profit of KRW 650.20 billion (USD 580.19 million) increased significantly by 539 percent compared to the fourth quarter of 2019.

While COVID-19 and slow economic recovery remain concerns for 2021, LG expects the global economy to normalize under the sound fiscal policies of world governments and the successful implementation of vaccinations. In 2021, core technologies such as AI, 5G, IoT and mobility will be widely applied to various LG business areas.

The LG Home Appliance & Air Solution Company ended another healthy year with record 2020 revenues of KRW 22.27 trillion (USD 19.87 billion), an increase of 3.5 percent increase from the previous year, and operating profit of KRW 2.35 trillion (USD 2.10 billion), another record. Results reflect increased sales of new appliance categories and the home appliance rental business in South Korea. Fourth-quarter revenue of KRW 5.54 trillion (USD 4.94 billion) was the highest fourth quarter in the company’s history, an increase of 20 percent year-on-year with double digit growth in South Korea, North America and Europe.

The LG Home Entertainment Company reported 2020 revenues of KRW 13.18 trillion (USD 11.76 billion) and operating profit of KRW 969.70 billion (USD 865.29 million), a 22.9 percent increase over the previous year. Sales in the quarter of KRW 4.28 trillion (USD 3.82 billion) were 7.9 percent higher than the fourth quarter of 2019 and up 16.7 percent from the previous quarter. Quarterly operating profit of KRW 204.50 billion (USD 182.48 million) reflected increased sales in North America and Europe.

The LG Mobile Communications Company announced full-year 2020 revenues of KRW 5.22 trillion (USD 4.66 billion). Fourth-quarter sales of KRW 1.39 trillion (USD 1.24 billion) were 4.9 percent higher than the same quarter of 2019 but 9.2 percent lower than the previous quarter due to shortages of 4G chipsets and sluggish sales of premium smartphones in overseas markets. The full-year operating loss totaled KRW 841.20 billion (USD 750.63 million), reflecting increased marketing investments to support flagship devices, partially offset by fixed cost reductions due to manufacturing efficiencies.

The LG Vehicle Component Solutions Company reported sales in 2020 of KRW 5.80 trillion (USD 5.18 billion), growth of 6.1 percent over 2019. Revenues in the fourth quarter of KRW 1.91 trillion (USD 1.71 billion) were 41.3 percent higher than the same quarter the previous year driven in large part by the recovery of demand in key automotive markets including North America and Europe and higher sales from new projects. The modest fourth-quarter operating loss of KRW 2 billion (USD 1.78 million) improved year-on-year and quarter-on-quarter due to sales increases aligned with the recovery of market demand in the second half, as well as improved cost management.

The LG Business Solutions Company achieved 2020 revenues of KRW 6.01 trillion (USD 5.36 billion) with an operating profit of KRW 457.88 billion (USD 408.51 million) due to demand growth for IT products related to remote working and online learning. Fourth-quarter sales of KRW 1.51 trillion (USD 1.35 billion) were 4.8 percent higher than the same period of 2019, while quarterly operating profit was KRW 70.30 billion (USD 62.73 million), lower than the previous year due higher prices for major components and global logistic costs. The market for information displays is expected to improve as global demand recovers while demand for IT products continues to grow. The company’s solar module business is expected to improve with increased demand for renewable energy in major developed markets.

LG expanding factory

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LG Electronics said it plans to promote its smart factory push as the home appliance maker targets improving its productivity.

LG announced it will spend 50 billion won (US$45 million) from February to set up a new home appliance product testing facility at its second factory in Changwon, some 400 kilometers south of Seoul.

The new facility will integrate all existing testing labs at the factory, according to LG.

The South Korean tech giant said the forthcoming facility will accelerate digitalization in its product development as it will collect big data through various sensors during the testing process.

This photo provided by LG Electronics Inc. on Jan. 20, 2021, shows the company's plant in Changwon, some 400 kilometers south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

LG’s Changwon 2 factory produces home appliances including washers and vacuum cleaners.

The latest investment is a follow-up to LG’s smart factory project for its first factory in Changwon.

In 2017, LG announced that it will inject 600 billion won into the Changwon 1 factory by 2030 to upgrade its production system with the latest automation and big data solutions.

The company believes that the investment will improve production capacity of the Changwon 1 factory by 50 percent. The Changwon 1 factory rolled out 2 million units of kitchen appliances, such as refrigerators and ovens, in 2017.

LG Launches New Home Appliance Brand with Upgraded Customization Features

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LG Electronics Inc. on Thursday launched a new home appliance line with enhanced customization options as the South Korean tech firm targets more consumers who seek their own home interior styling.

LG Objet Collection allows consumers to select their own colors and materials for home appliances so that they can create harmony with interior design in their homes.

The new brand is an upgraded version of LG Objet, which was introduced in 2018 under a concept of “private appliance” that blends home appliances and artfully designed furniture.

LG said it partnered with U.S.-based Pantone Color Institute to offer more color options for LG Objet Collection appliances.

For material selections, the company included FENIX, a high-tech material developed by Italy’s Arpa Industriale known for its resistance to scratches and abrasion.

LG said 11 products are currently available under the LG Objet Collection brand, which includes refrigerators, a dish washer, a light wave oven, a washer-dryer combo and a clothing refresher, but the lineup will be expanded in the future.

For refrigerator doors, consumers can choose from 13 colors, along with various materials, including FENIX, stainless, glass and metal. There are a maximum of 145 design combinations for its three-door bottom-freezer refrigerator, according to LG.

Of the LG Objet Collection appliances, light wave oven, water purifier and dish washer are compatible with each other through its Internet of Things (IoT) platform, LG ThinQ.

For instance, when users select a cooking option on the oven, the water purifier automatically sets the right amount of water needed for the dish.

LG Electronics signs partnership with Italian luxury furniture brand Molteni&C

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LG Electronics Inc. said Monday it has signed a partnership with Italian luxury furniture maker Molteni&C S.P.A. to better promote its high-end brand LG Signature.

Under the deal, the two sides will collaborate in marketing, promotion and product development related with LG Signature home appliances, Molteni&C residential furniture and Dada kitchen furniture for the next three years

The South Korean tech firm said the collaboration will create synergy between their premium brands and deliver more opportunity for consumers to experience an “innovative, luxurious lifestyle.”

Molteni&C, founded in 1934, is a renowned designer furniture maker. It runs some 530 stores in 23 countries, including South Korea.

LG recently installed the LG Signature OLED 8K TV at the Molteni Museum in Italy, displaying how its premium electronics appliances can be in harmony with Molteni&C furniture. It will also display the luxury TV at Molteni&C’s flagship store in Paris set to open next month.

LG Electronics expected its best-ever third-quarter earnings,

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LG Electronics Inc. on Thursday expected its best-ever third-quarter earnings, as its home appliance and TV sales apparently got a boost from pent-up demand amid the pandemic-driven stay-at-home trend.

In its earnings guidance, the South Korean tech firm projected its operating profit at 959 billion won (US$831 million) for the July-September period, up 22.7 percent from a year earlier.

Its third-quarter operating income estimate beats the market consensus of 888.7 billion won in the data compiled by Yonhap Infomax, the financial arm of Yonhap News Agency, which surveyed 10 Korean brokerage houses in the past three weeks.

LG also expected its third-quarter sales to be 16.9 trillion won in the three-month period, up 7.8 percent from a year earlier. The figure is also above the market consensus of 16.4 trillion won.

Both sales and operating profit are the largest for any third quarter in its history.

LG did not break down performances of its respective business divisions, saying it will announce the detailed earnings later this month.

Analysts believe LG’s products highlighting health and hygiene features, such as air purifiers and steam dryers, led its home appliance sales amid the pandemic, while its TV sales also jumped due to the fast-growing stay-at-home economy and demand recovery in North America.

“As stay-at-home trends continue due to COVID-19, sales of its premium home appliances and TVs have been solid,” Lee Wang-jin, an analyst at eBest Investment & Securities, said.

“With reduced marketing costs, sales of 75-inch or larger TVs went very well.”

According to market researcher TrendForce, LG was the world’s second largest TV vendor in the third quarter after its TV shipments increased 6.7 percent on-year to 7.94 million units.

Compared with the second quarter, LG’s TV shipments soared 81.7 percent.

This photo provided by LG Electronics Inc. on Sept. 4, 2020, shows the company's OLED TV displayed at a store in Australia.

This photo provided by LG Electronics Inc. on Sept. 4, 2020, shows the company’s OLED TV displayed at a store in Australia.

LG’s struggling mobile business has been projected to narrow its operating losses in the third quarter with smartphone sales increasing.

The company expanded its budget smartphone lineup in major markets to overcome the long slump in the mobile business, which has been in the red since the second quarter of 2015.

“LG’s mobile business is expected to have reduced its operating loss with demand recovery in the United States and some benefits from the Huawei ban in the Latin American market,” Kim Rok-ho, an analyst at Hana Financial Investment, said.

LG’s vehicle component solutions business has been also tapped to post improved earnings in the third quarter as global automakers started to resume operations after lockdowns.

Shares in LG dived 2.91 percent to 93,300 won on the Seoul bourse, underperforming the broader KOSPI’s 0.21 percent increase despite its upbeat earnings guidance

LG InstaView™ is a Door-in-Door® refrigerator

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LG InstaView™ is a Door-in-Door® refrigerator offering easy access to food and an adjustable bin that fits snacks and drinks of all sizes. With this model, user can look inside the fridge without ever opening the door—just knock twice on the unique glass panel. Moreover, InstaView™ features dual ice makers with Craft Ice™ automatically create crushed, cubed and LG’s exclusive slow-melting round ice on demand for upscale, craft drinks at home – without the work. An additional ice maker on the refrigerator door dispenses traditional cubed or crushed ice with the push of a button. The model also offers 3 cooling technologies that work together to extend the life of fruits and vegetables and help keep all foods fresh: Linear Cooling keeps temperatures within 1°F of the setting, Smart Cooling uses sensors and vents for total cooling control, and Door Cooling+ delivers blasts of cool air to all areas of the refrigerator. LG InstaView™ is available in different variants, including Side-By-Side, French 3-Door and 4-Door models, plus a variety of finishes, depths and price points.

New version of its home appliance management app “LG ThinQ.”

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LG Electronics has released a new version of its home appliance management app “LG ThinQ.” The app allows users to manage 28 types of home appliances including TVs, refrigerators, air conditioners and washing machines.

The new version features a setting function that allows a user to activate multiple appliances at the same time according to pre-set conditions. For example, if air quality in a house is bad, the app puts an air purifier and an air conditioner into air clean mode at the same time.

Another advantage is that a chatbot service based on artificial intelligence provides product information and helps users shoot troubles and file repair requests. A subscription service function, which automatically purchases necessary parts or consumables at regular intervals, has also been introduced.

The user experience (UX) of the app has also been dramatically enhanced to enable people to intuitively use it.