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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 2019 KRWUSD
Revenue62,306.17B53,427.38M
Gross Profit----
Operating income2,436.13B2,088.98M
Income before tax528,638.31M453.30M
Net income179,948.23M154.30M
EBITDA----
Diluted EPS----
Dividends Per Share7500.64
Total Assets44,859.87B38,791.02M
Total liabilities----
Total equity14,330.08B12,391.44M
Operating cash flow----
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 56,509.00B 55,367.03B 61,396.28B 61,341.66B 62,306.17B
Gross Profit 13,560.33B 13,266.89B 14,219.42B 14,655.69B --
Operating income 1,160.45B 1,315.08B 2,454.78B 2,683.60B 2,436.13B
Income before tax 593,125M 721,717M 2,558.11B 2,008.57B 528,638.31M
Net income 128,228M 76,879M 1,725.77B 1,240.13B 179,948.23M
EBITDA 3,093.17B 3,059.44B 4,222.35B 4,685.03B --
Diluted EPS 690.82 426.94 9,584.12 6,887.13 --
Dividends Per Share 400 400 400 750 750
Total Assets 36,313.89B 37,855.26B 41,220.95B 44,328.44B 44,859.87B
Total liabilities 23,330.40B 24,498.52B 26,547.27B 28,021.53B --
Total equity 11,626.57B 11,987.09B 13,224.26B 14,253.26B 14,330.08B
Operating cash flow 2,618.77B 3,157.99B 422,370M 4,541.56B --
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 49,928.28M 47,722.39M 54,308.47M 55,738.89M 53,427.38M
Gross Profit 11,981.17M 11,435.10M 12,577.88M 13,317.08M --
Operating income 1,025.31M 1,133.50M 2,171.39M 2,438.48M 2,088.98M
Income before tax 524.05M 622.06M 2,262.79M 1,825.11M 453.30M
Net income 113.29M 66.26M 1,526.54M 1,126.86M 154.30M
EBITDA 2,732.96M 2,637.02M 3,734.91M 4,257.11M --
Diluted EPS 0.61 0.36 8.47 6.25 --
Dividends Per Share 0.35 0.34 0.35 0.68 0.64
Total Assets 30,970.01M 31,342.33M 38,504.46M 39,727.94M 38,791.02M
Total liabilities 19,897.15M 20,283.59M 24,797.78M 25,113.40M --
Total equity 9,915.62M 9,924.73M 12,352.77M 12,774.03M 12,391.44M
Operating cash flow 2,313.80M 2,721.96M 373.61M 4,126.75M --

Valuation Measures

Dec 2019
PER72.45
ROA0.40%
ROE1.25%
Operating margin3.90%
Profit margin0.28%

Key executives

  • Chief Executive Officer: Brian Kwon
  • Chief Technology Officer: Il-Pyung Park
  • Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
  • Vice President: Ho-Kun Hwang
  • Vice President: Young-Bae Na

Shareholders

  • LG Corp. (33.6%)
  • National Pension Service of Korea (9.5%)
  • Dimensional Fund Advisors LP (1.9%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.5%)
  • Norges Bank Investment Management (1.2%)
  • Samsung Asset Management Co., Ltd. (0.8%)
  • APG Asset Management NV (0.7%)
  • Mirae Asset Global Investments Co., Ltd. (0.5%)
  • Acadian Asset Management LLC (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

Related Companies

  • EIC Properties Pte Ltd.
  • LG Electronics Colombia Lda.
  • LG Fuel Cell Systems Korea, Inc.
  • LG Electronics, Inc. /Time Controller Business/
  • LG Electronics Peru SA
  • 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
  • LG Electronics Rus OOO
  • Daewoo Entec Co. Ltd.
  • LG Electronics HK Ltd.
  • New Allied Electronics Industries (Pvt) Ltd.
  • PT LG Electronics Indonesia
  • LS Mtron Co. Ltd. /Air Conditioning Business/
  • LG Electronics Inc. Chile Ltda.

Competitors

  • VOXX International Corporation Class A
  • TCL Electronics Holdings Limited
  • Dayou Automotive Seat Technology Co., Ltd
  • Archos SA
  • Sichuan Changhong Electric Co., Ltd. Class A
  • Continental AG
  • Fitbit, Inc. Class A
  • Visteon Corporation
  • Whirlpool Corporation
  • Inseego Corp.
  • Plantronics, Inc.
  • OSRAM Licht AG
  • Korea Electric Terminal Co., Ltd.
  • NETGEAR, Inc.
  • AFCON Holdings Ltd
  • Beijer Ref AB Class B
  • Concepcion Industrial Corp.
  • Roku, Inc. Class A
  • Vuzix Corporation
  • WiSoL Co., Ltd.
  • G-treeBNT Co., Ltd.
  • Tadiran Holdings Ltd.
  • Kyung In Electronics Co., Ltd.
  • Electra Consumer Products Ltd.
  • SK Networks Co., Ltd.
  • Bubang Co., Ltd.
  • Capstone Turbine Corporation
  • COWAY CO.,LTD.
  • Cuchen Co., Ltd.
  • CUCKOO HOMESYS CO.,LTD
Last Updated on 24 Feb, 2020

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