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Consumer Durables

LG Electronics, Inc.

  • 76,100.00 KRW
  • +2,500.00
  • +3.40%
  • South Korea
    Aug 14, 2018
  • Ticker
    KRX(066570)
  • Prev. close
    73,600
  • Market cap (KRW)
    12,044.47B
  • Market cap (USD)
    10,678.20M
  • Shares
    163.64M

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 April 1, 2002 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue61,396.28B54,308.47M
Gross Profit14,219.42B12,577.88M
Operating income2,454.78B2,171.39M
Income before tax2,558.11B2,262.79M
Net income1,725.77B1,526.54M
EBITDA4,222.35B3,734.91M
Diluted EPS9,5848.47
Dividends Per Share4000.35
Total Assets41,220.95B38,504.46M
Total liabilities26,547.27B24,797.78M
Total equity13,224.26B12,352.77M
Operating cash flow2,166.27B1,916.18M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 56,772.30B 59,040.76B 56,509.00B 55,367.03B 61,396.28B
Gross Profit 12,676.14B 13,230.10B 13,560.33B 13,266.89B 14,219.42B
Operating income 1,223.71B 1,763.64B 1,160.45B 1,315.08B 2,454.78B
Income before tax 589,544M 1,218.27B 593,125M 721,717M 2,558.11B
Net income 185,069M 576,171M 128,228M 76,879M 1,725.77B
EBITDA 3,098.77B 3,705.13B 3,093.17B 3,059.44B 4,222.35B
Diluted EPS 983.64 2,831.01 690.82 426.94 9,584
Dividends Per Share 200 400 400 400 400
Total Assets 35,528.06B 37,068.42B 36,313.89B 37,855.26B 41,220.95B
Total liabilities 22,848.58B 24,087.21B 23,330.40B 24,498.52B 26,547.27B
Total equity 11,729.31B 11,709.53B 11,626.57B 11,987.09B 13,224.26B
Operating cash flow 2,210.90B 2,029.18B 2,618.77B 3,157.99B 2,166.27B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 51,858.09M 56,087.30M 49,928.28M 47,722.39M 54,308.47M
Gross Profit 11,578.90M 12,568.27M 11,981.17M 11,435.10M 12,577.88M
Operating income 1,117.78M 1,675.42M 1,025.31M 1,133.50M 2,171.39M
Income before tax 538.51M 1,157.32M 524.05M 622.06M 2,262.79M
Net income 169.04M 547.34M 113.29M 66.26M 1,526.54M
EBITDA 2,830.54M 3,519.78M 2,732.96M 2,637.02M 3,734.91M
Diluted EPS 0.89 2.68 0.61 0.36 8.47
Dividends Per Share 0.18 0.37 0.35 0.34 0.35
Total Assets 33,664.72M 33,724.62M 30,970.01M 31,342.33M 38,504.46M
Total liabilities 21,650.24M 21,914.40M 19,897.15M 20,283.59M 24,797.78M
Total equity 11,114.14M 10,653.26M 9,915.62M 9,924.73M 12,352.77M
Operating cash flow 2,019.52M 1,927.67M 2,313.80M 2,721.96M 1,916.18M

Valuation Measures

Dec 2017
PER11.06
ROA4.36%
ROE13.69%
Operating margin3.99%
Profit margin2.81%

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 (9.3%)
  • Dimensional Fund Advisors LP (1.8%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.3%)
  • Norges Bank Investment Management (1.1%)
  • APG Asset Management NV (1.1%)
  • Acadian Asset Management LLC (0.5%)
  • LG Electronics, Inc. (0.4%)
  • 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

  • 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.
  • LG Electronics Nanjing Display Co. Ltd.
  • Triveni Digital, Inc.

Competitors

  • Skyworth Digital Holdings Limited
  • Archos SA
  • Fitbit, Inc. Class A
  • Midea Group Co. Ltd. Class A
  • Arcelik A.S.
  • Sichuan Changhong Electric Co., Ltd. Class A
  • TCL Electronics Holdings Limited
  • Tadiran Holdings Ltd.
  • Dayou Automotive Seat Technology Co., Ltd
  • Electrolux AB Class B
  • Whirlpool Corporation
  • Inseego Corp.
  • OSRAM Licht AG
  • Korea Electric Terminal Co., Ltd.
  • Bigben Interactive SA
  • Continental AG
  • Concepcion Industrial Corp.
  • Visteon Corporation
  • Plantronics, Inc.
  • Electra Consumer Products Ltd.
  • Ledtech Electronics Corp.
  • FuelCell Energy, Inc.
  • Roku, Inc. Class A
  • Rechi Precision Co. Ltd.
  • WiSoL Co., Ltd.
  • Vuzix Corporation
  • Daemyung Corporation Co., Ltd
  • Orbotech Ltd.
  • SK Networks Co., Ltd.
  • NETGEAR, Inc.
Last Updated on 14 Aug, 2018

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