Consumer Durables
LG Electronics, Inc.
In the news
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- LG debuts fan-powered mask to ease breathing Jul 13, 2020
- US to allow companies to work with Huawei on 5G standards Jun 17, 2020
- LG Electronics tops giant Samsung in white goods Jun 13, 2020 See more articles on 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 2020 | KRW | USD |
| Revenue | 63,262.04B | 53,616.99M |
| Gross Profit | 16,758.78B | 14,203.71M |
| Operating income | 3,179.48B | 2,694.73M |
| Income before tax | 2,479.82B | 2,101.74M |
| Net income | 1,968.33B | 1,668.23M |
| EBITDA | 5,822.39B | 4,934.70M |
| Diluted EPS | 10,931.17 | 9.26 |
| Dividends Per Share | 1,200 | 1.01 |
| Total Assets | 48,204.22B | 44,374.68M |
| Total liabilities | 30,662.10B | 28,226.18M |
| Total equity | 15,437.50B | 14,211.08M |
| Operating cash flow | 4,628.57B | 3,922.89M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | |
| Revenue | 55,367.03B | 61,396.28B | 61,341.66B | 62,306.17B | 63,262.04B |
| Gross Profit | 13,266.89B | 14,219.42B | 14,655.69B | 16,128.72B | 16,758.78B |
| Operating income | 1,315.08B | 2,454.78B | 2,683.60B | 2,298.74B | 3,179.48B |
| Income before tax | 721,717M | 2,558.11B | 2,008.57B | 1,580.73B | 2,479.82B |
| Net income | 76,879M | 1,725.77B | 1,240.13B | 31,285M | 1,968.33B |
| EBITDA | 3,059.44B | 4,222.35B | 4,685.03B | 4,805.11B | 5,822.39B |
| Diluted EPS | 426.94 | 9,584 | 6,887.13 | 173.74 | 10,931.17 |
| Dividends Per Share | 400 | 400 | 750 | 750 | 1,200 |
| Total Assets | 37,855.26B | 41,220.95B | 44,328.44B | 44,859.87B | 48,204.22B |
| Total liabilities | 24,498.52B | 26,547.27B | 28,021.53B | 28,434.73B | 30,662.10B |
| Total equity | 11,987.09B | 13,224.26B | 14,253.26B | 14,330.08B | 15,437.50B |
| Operating cash flow | 3,157.99B | 2,166.27B | 4,541.56B | 3,689.16B | 4,628.57B |
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | |
| Revenue | 47,722.39M | 54,308.47M | 55,738.89M | 53,427.38M | 53,616.99M |
| Gross Profit | 11,435.10M | 12,577.88M | 13,317.08M | 13,830.33M | 14,203.71M |
| Operating income | 1,133.50M | 2,171.39M | 2,438.48M | 1,971.16M | 2,694.73M |
| Income before tax | 622.06M | 2,262.79M | 1,825.11M | 1,355.47M | 2,101.74M |
| Net income | 66.26M | 1,526.54M | 1,126.86M | 26.82M | 1,668.23M |
| EBITDA | 2,637.02M | 3,734.91M | 4,257.11M | 4,120.37M | 4,934.70M |
| Diluted EPS | 0.36 | 8.47 | 6.25 | 0.14 | 9.26 |
| Dividends Per Share | 0.34 | 0.35 | 0.68 | 0.64 | 1.01 |
| Total Assets | 31,342.33M | 38,504.46M | 39,727.94M | 38,791.02M | 44,374.68M |
| Total liabilities | 20,283.59M | 24,797.78M | 25,113.40M | 24,587.95M | 28,226.18M |
| Total equity | 9,924.73M | 12,352.77M | 12,774.03M | 12,391.44M | 14,211.08M |
| Operating cash flow | 2,721.96M | 1,916.18M | 4,126.75M | 3,163.44M | 3,922.89M |
Valuation Measures
| Dec 2020 | |
| PER | 12.35 |
| ROA | 4.23% |
| ROE | 13.22% |
| Operating margin | 5.02% |
| Profit margin | 3.11% |
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 (8.5%)
- The Vanguard Group, Inc. (1.6%)
- BlackRock Fund Advisors (1.6%)
- Dimensional Fund Advisors LP (1.1%)
- Norges Bank Investment Management (1.1%)
- Mirae Asset Global Investments Co., Ltd. (0.6%)
- Polaris Capital Management LLC (0.6%)
- BlackRock Advisors (UK) Ltd. (0.5%)
- APG Asset Management NV (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
- LG Electronics Nanjing Vehicle Components Co., Ltd.
- LG Japan Lab Co., Ltd.
- LG Electronics Dubai FZE
- LG Electronics Algerie SARL
- LG Electronics Africa Logistics FZE
- LG Electronics Angola Lda.
- LG Electronics Guatemala SA
- LG Consulting Corp.
- LG Electronics Venezuela SA
- LG Electronics Ukraine Co., Ltd.
- LG Electronics Almaty Kazakhstan LLC
- Hi M Solutek Hvac Service & Maintenance LLC
- LG Electronics Saudi Arabia LLC
- LG Electronics S.A. (Pty) Ltd.
- LG Electronics Overseas Trading FZE
- LGENAF Service Co. SARL
- LG Electronics Nigeria Ltd.
- LG Electronics Fund I LLC
- LGEUS Power LLC
- LG Electronics Vehicle Components U.S.A. LLC
- Zenith Electronics Corporation of Pennsylvania
- Servicios LG Monterrey Mexico SA de CV
- Servicios Integrales LG SA DE CV
- KES Poland Sp zoo
- ZKW Austria Immobilien Holding GmbH
- LG Electronics Finland Lab Oy
- LG Electronics Benelux Sales BV
- Hi-M Solutek Vietnam Co., Ltd.
- Hi-M Solutek Philippines, Inc .
- PT LG Electronics Service Indonesia
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Last Updated on 15 Oct, 2021
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