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Consumer Durables

LG Electronics, Inc.

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 2021 KRWUSD
Revenue74,721.62B65,249.98M
Gross Profit18,254.95B15,940.97M
Operating income3,863.77B3,374.00M
Income before tax3,094.51B2,702.25M
Net income2,180.43B1,904.04M
EBITDA6,702.67B5,853.04M
Diluted EPS5,729.625.00
Dividends Per Share8500.74
Total Assets53,481.47B44,989.67M
Total liabilities33,383.44B28,082.81M
Total equity17,230.64B14,494.75M
Operating cash flow2,677.38B2,337.99M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 61,396.28B 61,341.66B 62,306.17B 58,057.90B 74,721.62B
Gross Profit 14,219.42B 14,655.69B 16,128.72B 14,923.71B 18,254.95B
Operating income 2,454.78B 2,683.60B 2,298.74B 3,905.10B 3,863.77B
Income before tax 2,558.11B 2,008.57B 1,580.73B 3,367.52B 3,094.51B
Net income 1,725.77B 1,240.13B 31,285M 2,616.74B 2,180.43B
EBITDA 4,222.35B 4,685.03B 4,805.11B 6,421.23B 6,702.67B
Diluted EPS 9,584 6,887.13 173.74 10,931.17 5,729.62
Dividends Per Share 400 750 750 1,200 850
Total Assets 41,220.95B 44,328.44B 44,859.87B 48,204.22B 53,481.47B
Total liabilities 26,547.27B 28,021.53B 28,434.73B 30,662.10B 33,383.44B
Total equity 13,224.26B 14,253.26B 14,330.08B 15,437.50B 17,230.64B
Operating cash flow 2,166.27B 4,541.56B 3,689.16B 4,628.57B 2,677.38B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 54,308.47M 55,738.89M 53,427.38M 49,206.29M 65,249.98M
Gross Profit 12,577.88M 13,317.08M 13,830.33M 12,648.41M 15,940.97M
Operating income 2,171.39M 2,438.48M 1,971.16M 3,309.72M 3,374.00M
Income before tax 2,262.79M 1,825.11M 1,355.47M 2,854.10M 2,702.25M
Net income 1,526.54M 1,126.86M 26.82M 2,217.79M 1,904.04M
EBITDA 3,734.91M 4,257.11M 4,120.37M 5,442.24M 5,853.04M
Diluted EPS 8.47 6.25 0.14 9.26 5.00
Dividends Per Share 0.35 0.68 0.64 1.01 0.74
Total Assets 38,504.46M 39,727.94M 38,791.02M 44,374.68M 44,989.67M
Total liabilities 24,797.78M 25,113.40M 24,587.95M 28,226.18M 28,082.81M
Total equity 12,352.77M 12,774.03M 12,391.44M 14,211.08M 14,494.75M
Operating cash flow 1,916.18M 4,126.75M 3,163.44M 3,922.89M 2,337.99M

Valuation Measures

Dec 2021
PER24.08
ROA4.28%
ROE13.34%
Operating margin5.17%
Profit margin2.91%

Key executives

  • President. Chief Executive Officer & Director: Joo-wan Cho
  • Chief Technology Officer & Executive VP: Byoung-hoon Kim
  • Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
  • Executive Vice President: Park Hyoung-sei
  • Executive Vice President: Brian Na

Shareholders

  • LG Corp. (33.6%)
  • National Pension Service of Korea (7.0%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.4%)
  • Dimensional Fund Advisors LP (1.1%)
  • Norges Bank Investment Management (1.0%)
  • APG Asset Management NV (0.7%)
  • Mirae Asset Global Investments Co., Ltd. (0.6%)
  • Samsung Asset Management Co., Ltd. (0.6%)
  • Goldman Sachs Asset Management International (0.5%)

Contact Details

  • 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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Competitors

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  • AFCON Holdings Ltd
  • Beijer Ref AB Class B
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  • HLB Therapeutics Co., Ltd.
  • Vuzix Corporation
  • VIZIO Holding Corp. Class A
  • Tadiran Group Ltd
  • CUCKOO HOMESYS CO.,LTD
  • Capstone Green Energy Corporation
  • Meyer Burger Technology AG
  • SK Networks Co., Ltd.
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  • Daxin Materials Corporation
  • Hyundai Ezwel Co., Ltd.
  • Hyundai Futurenet Co., Ltd
  • iRobot Corporation
  • LOTTE Himart Co., Ltd.
  • Lotte Shopping Co., Ltd
  • Mechema Chemicals International Corp.
  • Pixelworks, Inc.
  • Red Cat Holdings Inc
Last Updated on 30 Sep, 2022

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