LG posts remarkable growth in net profit
January 28, 2018 | 5:24 PM
by Times News Service
The LG logo is seen on a washing machine in Singapore January 26, 2018. Photo - Reuters

Muscat: LG Electronics on Sunday announced its record full-year revenues for 2017 of KRW 61.4 trillion ($55.4 billion), an increase of 10.9 per cent from the previous year, the highest in the company’s history.

Full-year 2017 profits of $2.23 billion – the highest profit since 2009 – increased 85 per cent from 2016 due in large part to strong performance by premium home appliances and televisions. Fourth-quarter 2017 revenues grew 15 per cent versus 2016 to $15.3 billion, generating strong operating profits of$330.9 million, according to a company release.

The LG Home Appliance & Air Solutions Company reported full-year 2017 revenues of $17.34 billion, a 11 per cent increase from the previous year, reflecting strong demand for premium products such as TWINWash washing machines, InstaView refrigerators and energy-efficient home appliances.

Fourth-quarter 2017 revenues of $3.91 billion rose 7 per cent from the same period the previous year, with sales in Korea up 27 per cent year-over-year.

Quarterly operating income declined to $72.8 million because of increased marketing expenses related to LG Signature, infrastructure investments in North America and research and development expenditures related to artificial intelligence appliances and robots.

The LG Home Entertainment Company reported full-year revenues of $16.85 billion, a 7 per cent increase from the previous year. Strong full-year operating profit of $1.41 billion reflected the continued growth in demand of premium LG OLED and UHD TV products.

Fourth-quarter 2017 sales were strong, up 14 per cent year-over-year to $4.94 billion, thanks to increasing demand for LG premium TVs. Operating income for the quarter increased 134 per cent from the same period 2016 to $345.96 million.

The LG Mobile Communications Company posted full-year sales of $10.52 billion despite a challenging marketplace and strong competition from Chinese brands.

Fourth-quarter revenues increased to $2.77 billion, while the quarterly operating loss narrowed to $192.33 million due to strong sales of the LG V30 and other premium smartphones and an improved business structure.

The LG Vehicle Components Company posted solid full-year sales of $3.15 billion, an increase of nearly 26 per cent from the previous year, and quarterly sales of $772.8 million, down slightly from the same period a year earlier.

The company’s fourth-quarter 2017 profitability declined due to a temporary fall in sales in the infotainment business and investments in new business.

Growth of the global electric vehicle market is expected to generate additional demand for components in 2018.

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