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 2018	KRW	USD
Revenue	61,341.66B	55,738.89M
Gross Profit	14,655.69B	13,317.08M
Operating income	2,683.60B	2,438.48M
Income before tax	2,008.57B	1,825.11M
Net income	1,240.13B	1,126.86M
EBITDA	4,685.03B	4,257.11M
Diluted EPS	6,887.13	6.25
Dividends Per Share	750	0.68
Total Assets	44,328.44B	39,727.94M
Total liabilities	28,021.53B	25,113.40M
Total equity	14,253.26B	12,774.03M
Operating cash flow	4,541.56B	4,126.75M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 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 2014	Dec 2015	Dec 2016	Dec 2017	Dec 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
PER	9.04
ROA	2.89%
ROE	9.02%
Operating margin	4.37%
Profit margin	2.02%

Key executives

Co-President, Co-CEO, CFO & Director: Do-Hyun Jung
Chief Executive Officer & Director: Seong-Jin Cho
Chief Technology Officer: Il-Pyung Park
Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
Vice President: Ho-Kun Hwang

Shareholders

LG Corp. (33.6%)
National Pension Service of Korea (9.9%)
Dimensional Fund Advisors LP (1.9%)
The Vanguard Group, Inc. (1.7%)
BlackRock Fund Advisors (1.4%)
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

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Last Updated on 20 Nov, 2019