Asia300

LG Electronics, Inc.

South Korea

  • 1m
  • 3m
  • 6m
  • 1y
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  • 5y
Mar 24, 2017
Prev close: 72,200
Mar 24, 2017
Market cap:
Market cap(USD):
11,815.4B
10,525M
Shares: 163.64M

Currency in KRW

Company profile

Market(Ticker): KRX(066570)
Sector:
Industry:
Consumer Durables
Electronics/Appliances
Full time employees: --

Business summary

LG Electronics, Inc. engages in the manufacturing of display devices, home appliances, multimedia goods, electronic parts and develops software. It operates through the following business areas: Home Entertainment, Mobile Communications, Home Appliance, Air-Conditioning, Energy Solution and Independent business area. The Home Entertainment business area provides products such as televisions, monitors, personal computers for IT, Car Infotainment and produces Chemical and Electronic Materials. The Mobile Communications business area offers products such as handsets and tablets. The Home Appliance business area provides products such as refrigerators, washing machines, cooking and cleaning and health care appliances. The Air Conditioning and Energy Solution business area manufactures products such as Light Emitting Diode (LED) lightings, residential and system air conditioners. The Independent business area provides products such as compressors, storage devices, PC, telematics and solar cells. The company was founded by In-Hwoi Koo on October 1, 1958 and is headquartered in Seoul, South Korea.

Company background

LG Electronics is a core company of South Korean conglomerate LG group, alongside LG Chem. Founded in 1958, LG Electronics has led the country's electronics industry since its early days as the first producer of radios, TVs and other appliances. Now, it is the second-largest electronics maker after Samsung Electronics.

Although LG Electronics lags far behind Samsung in semiconductors and smartphones, the two companies are in close competition in areas such as TVs, washing machines and refrigerators, at home and abroad. Headhunting and patent infringement suits are also common between the two companies. LG Electronics is known for its more laid-back work atmosphere compared to Samsung, which requires its employees to deliver results in a short time.

Its affiliated companies, such as LG Display and LG Innotek, produce liquid crystal display panels and electronic parts. Amid increased competition with its Chinese rivals in consumer products, LG Electronics aims to boost sales of electronic parts outside the group. It has, for example, set up a division specializing in research and development and supply to automakers.

Koo Bon-joon, vice chairman of LG Electronics, is the brother of LG Corp. chairman Koo Bon-moo, and the grandson of Koo In-hwoi, the company founder. He cannot ignore his brother when making important management decisions.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 55,367.03B
Gross profit 13,266.89B
Operating income 1,315.08B
Income before tax 452,979M
Net income 76,879M
EBITDA 3,059.44B
Diluted EPS 426.94
Dividends per share 400
Total assets 37,855.26B
Total liabilities 24,498.52B
Total equity 11,987.09B
Operating cash flow 3,157.99B

Currency in KRW

Revenue 47,722.39M
Gross profit 11,435.10M
Operating income 1,133.50M
Income before tax 390.43M
Net income 66.26M
EBITDA 2,637.02M
Diluted EPS 0.36
Dividends per share 0.34
Total assets 31,342.33M
Total liabilities 20,283.59M
Total equity 9,924.73M
Operating cash flow 2,721.96M

Currency in USD

Valuation measures

Dec 2016

PER 120.85
ROA 0.20%
ROE 0.65%
Operating margin 2.37%
Profit margin 0.13%

Key executive

  • Co-President, Co-CEO, CFO & Director: Do-Hyun Jung
  • Co-President, Co-CEO & Director: Sung-Jin Cho
  • Co-President, Co-CEO & Director: Jun-Ho Jo
  • COO & President-Executive Board: Jong-Sik Kim
  • President-Executive Board & CTO: Skott Ahn

Share holders

  • LG Corp.(33.6%)
  • National Pension Service of Korea(7.5%)
  • Dimensional Fund Advisors LP(1.9%)
  • The Vanguard Group, Inc.(1.3%)
  • BlackRock Fund Advisors(1.1%)
  • Norges Bank Investment Management(1.0%)
  • LG Electronics, Inc. Employee Stock Ownership Association(1.0%)
  • Lazard Asset Management LLC(0.5%)
  • LG Electronics, Inc.(0.4%)
  • Samsung Asset Management Co., Ltd.(0.4%)

Address

  • Website: http://www.lge.com
  • Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

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