Strong demand for high-end appliances drove growth, company says
LG Electronics said it posted revenue of 74.72 trillion won and operating profit of 3.86 trillion won for the full year of 2021.
Revenue is the highest ever, which the South Korean electronics maker attributes to strong sales of high-end home appliances.
Revenue increased 28.7% from 2020. However, operating profit fell 1.1% over the same period.
In the fourth quarter alone, LG posted revenue of 21 trillion won and operating profit of 677.7 billion won, up 20.7% and down 21.4%. , respectively, compared to a year ago.
The appliance business totaled 6.52 trillion won and 151.71 billion won for quarterly operating profit revenue.
LG said the business unit saw growth across all regions, particularly in North America and Europe, during the quarter.
The unit’s operating profit, however, fell 44.8% year-on-year, which the company said was caused by higher raw material and logistics costs.
LG’s TV business unit, meanwhile, posted revenue of 5 trillion won and operating profit of 162.7 billion won.
The company said it has seen an increase in OLED TV sales despite declining overall demand for TVs around the world.
The auto components unit and the business-to-business unit, however, posted losses as chip shortages led to delays in automakers’ production schedules and higher logistics costs, respectively.
LG Electronics said it expects uncertainties from COVID-19 outbreaks and rising raw material costs to persist in 2022, but will focus on high-end product offerings and supply chain management to ensure profitability.
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