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Consumer Durables

LG Electronics, Inc.

  • 74,900.00 KRW
  • +1,900.00
  • +2.60%
  • South Korea
    Mar 25, 2019
  • Ticker
    KRX(066570)
  • Prev. close
    73,000
  • Market cap (KRW)
    12,443.82B
  • Market cap (USD)
    10,971.93M
  • Shares
    180.83M

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.

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 Oct 1, 1958 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2018 KRWUSD
Revenue61,341.66B55,738.89M
Gross Profit14,655.69B13,317.08M
Operating income2,683.60B2,438.48M
Income before tax2,008.57B1,825.11M
Net income1,240.13B1,126.86M
EBITDA4,685.03B4,257.11M
Diluted EPS6,887.136.25
Dividends Per Share7500.68
Total Assets44,328.44B39,727.94M
Total liabilities28,021.53B25,113.40M
Total equity14,253.26B12,774.03M
Operating cash flow4,541.56B4,126.75M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 59,040.76B 56,509.00B 55,367.03B 61,396.28B 61,341.66B
Gross Profit 13,230.10B 13,560.33B 13,266.89B 14,219.42B 14,655.69B
Operating income 1,763.64B 1,160.45B 1,315.08B 2,454.78B 2,683.60B
Income before tax 1,218.27B 593,125M 721,717M 2,558.11B 2,008.57B
Net income 576,171M 128,228M 76,879M 1,725.77B 1,240.13B
EBITDA 3,705.13B 3,093.17B 3,059.44B 4,222.35B 4,685.03B
Diluted EPS 2,831.01 690.82 426.94 9,584 6,887.13
Dividends Per Share 400 400 400 400 750
Total Assets 37,068.42B 36,313.89B 37,855.26B 41,220.95B 44,328.44B
Total liabilities 24,087.21B 23,330.40B 24,498.52B 26,547.27B 28,021.53B
Total equity 11,709.53B 11,626.57B 11,987.09B 13,224.26B 14,253.26B
Operating cash flow 2,029.18B 2,618.77B 3,157.99B 2,166.27B 4,541.56B
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 56,087.30M 49,928.28M 47,722.39M 54,308.47M 55,738.89M
Gross Profit 12,568.27M 11,981.17M 11,435.10M 12,577.88M 13,317.08M
Operating income 1,675.42M 1,025.31M 1,133.50M 2,171.39M 2,438.48M
Income before tax 1,157.32M 524.05M 622.06M 2,262.79M 1,825.11M
Net income 547.34M 113.29M 66.26M 1,526.54M 1,126.86M
EBITDA 3,519.78M 2,732.96M 2,637.02M 3,734.91M 4,257.11M
Diluted EPS 2.68 0.61 0.36 8.47 6.25
Dividends Per Share 0.37 0.35 0.34 0.35 0.68
Total Assets 33,724.62M 30,970.01M 31,342.33M 38,504.46M 39,727.94M
Total liabilities 21,914.40M 19,897.15M 20,283.59M 24,797.78M 25,113.40M
Total equity 10,653.26M 9,915.62M 9,924.73M 12,352.77M 12,774.03M
Operating cash flow 1,927.67M 2,313.80M 2,721.96M 1,916.18M 4,126.75M

Valuation Measures

Dec 2018
PER9.04
ROA2.89%
ROE9.02%
Operating margin4.37%
Profit margin2.02%

Key executives

  • President, Co-CEO, CFO & Director: Do-Hyun Jung
  • Vice Chairman & Co-Chief Executive Officer: Seong-Jin Cho
  • Chief Technology Officer: Il-Pyung Park
  • Executive VP & Head-European Operations: Wayne Park
  • Vice President: Kevin Cha

Shareholders

  • LG Corp. (33.6%)
  • National Pension Service of Korea (10.0%)
  • Dimensional Fund Advisors LP (1.7%)
  • BlackRock Fund Advisors (1.7%)
  • The Vanguard Group, Inc. (1.6%)
  • Norges Bank Investment Management (1.1%)
  • APG Asset Management NV (0.9%)
  • Samsung Asset Management Co., Ltd. (0.9%)
  • BlackRock Japan Co., Ltd. (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.4%)

Contact Details

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

Related Companies

  • EIC Properties Pte Ltd.
  • LG Electronics Colombia Lda.
  • LG Fuel Cell Systems Korea, Inc.
  • LG Electronics, Inc. /Time Controller Business/
  • Hua Fei Color Display Systems Co., Ltd.
  • LG Holdings (HK) Ltd.
  • LG Optical (Mfg) Ltd.
  • Hi Plaza, Inc.
  • Ace R&A Co., Ltd.
  • Nanjing LG International Vmi Co. Ltd.
  • LG Electronics Vietnam Hai Phong Co. Ltd.
  • LG Electronics (Hangzhou) Co. Ltd.
  • LG Electronics (China) R&D Center Co. Ltd.
  • LG Electronics (Shanghai) R&D Center Co. Ltd.
  • Shanghai LG Electronics Co. Ltd.
  • LG Electronics Gulf FZE
  • LG Electronics (Qinhuangdao) Co. Ltd.
  • Qingdao LG Inspur Digital Communication Co. Ltd.
  • ZKW Group GmbH
  • Hewlett-Packard Co. /Web Operating System Business/
  • LG Fuel Cell Systems, Inc.
  • LG Electronics, Inc. Employee Stock Ownership Association
  • Daewoo Entec Co. Ltd.
  • LG Electronics HK Ltd.
  • New Allied Electronics Industries (Pvt) Ltd.
  • LS Mtron Co. Ltd. /Air Conditioning Business/
  • LG Electronics Inc. Chile Ltda.
  • LG Electronics Taiwan Taipei Co. Ltd.
  • LG Electronics Portugal SA
  • Innopla Co. Ltd.

Competitors

  • Skyworth Digital Holdings Limited
  • Archos SA
  • Fitbit, Inc. Class A
  • Dayou Automotive Seat Technology Co., Ltd
  • Sichuan Changhong Electric Co., Ltd. Class A
  • TCL Electronics Holdings Limited
  • Midea Group Co. Ltd. Class A
  • Whirlpool Corporation
  • Inseego Corp.
  • OSRAM Licht AG
  • Korea Electric Terminal Co., Ltd.
  • Continental AG
  • Ledtech Electronics Corp.
  • Concepcion Industrial Corp.
  • Electra Consumer Products Ltd.
  • Tadiran Holdings Ltd.
  • Visteon Corporation
  • Plantronics, Inc.
  • Roku, Inc. Class A
  • Rechi Precision Co. Ltd.
  • WiSoL Co., Ltd.
  • Vuzix Corporation
  • Daemyung Corporation Co., Ltd
  • SK Networks Co., Ltd.
  • NETGEAR, Inc.
  • BlackBerry Limited
  • Capstone Turbine Corporation
  • Coway Co., Ltd.
  • Cuchen Co., Ltd.
  • Display Tech Co., Ltd.
Last Updated on 25 Mar, 2019

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