LG Electronics, Inc.

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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	KRW	USD
Revenue	62,306.17B	53,427.38M
Gross Profit	15,928.24B	13,658.43M
Operating income	2,436.13B	2,088.98M
Income before tax	1,580.73B	1,355.47M
Net income	31,285M	26.82M
EBITDA	4,914.76B	4,214.39M
Diluted EPS	173.74	0.14
Dividends Per Share	750	0.64
Total Assets	44,859.87B	38,791.02M
Total liabilities	28,434.73B	24,587.95M
Total equity	14,330.08B	12,391.44M
Operating cash flow	3,689.16B	3,163.44M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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	15,928.24B
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	1,580.73B
Net income	128,228M	76,879M	1,725.77B	1,240.13B	31,285M
EBITDA	3,093.17B	3,059.44B	4,222.35B	4,685.03B	4,914.76B
Diluted EPS	690.82	426.94	9,584	6,887.13	173.74
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	28,434.73B
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	2,166.27B	4,541.56B	3,689.16B

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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	13,658.43M
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	1,355.47M
Net income	113.29M	66.26M	1,526.54M	1,126.86M	26.82M
EBITDA	2,732.96M	2,637.02M	3,734.91M	4,257.11M	4,214.39M
Diluted EPS	0.61	0.36	8.47	6.25	0.14
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	24,587.95M
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	1,916.18M	4,126.75M	3,163.44M

Valuation Measures

Dec 2019
PER	414.98
ROA	0.07%
ROE	0.21%
Operating margin	3.90%
Profit margin	0.05%

Key executives

Chief Executive Officer: Brian Kwon
Chief Technology Officer: Il-Pyung Park
Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
Senior Vice President: Taeg-il Cho
Vice President: Ho-Kun Hwang

Shareholders

LG Corp. (33.6%)
National Pension Service of Korea (10.1%)
The Vanguard Group, Inc. (1.9%)
Dimensional Fund Advisors LP (1.9%)
BlackRock Fund Advisors (1.5%)
Norges Bank Investment Management (1.1%)
Samsung Asset Management Co., Ltd. (1.0%)
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

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Competitors

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Last Updated on 1 Jun, 2020