LG Electronics Inc. announced that its operating profit rose by 12.2 percent to $1.16 billion last year, thanks to strong performance at its home appliances, air solutions and home entertainment units.
LG also reported revenues of $47.92 billion and a net income of $109.31 million for 2016.
Both the LG Home Appliance and Air Solutions Company and LG Home Entertainment Company posted their strongest operating profit ever in 2016, according to a press release.
LG, however, reported a net loss of $223.98 million for the fourth quarter because of losses from mobile communications and vehicle components.
LG Home Appliance and Air Solutions Company reported revenues of $14.92 billion for 2016 and $3.50 billion in the fourth quarter.
This was an increase of 5.6 percent year-over-year, driven in large part by strong sales in South Korean and North American markets where products such as TwinWash washing machines and door-in-door refrigerators continued to be popular.
The operating income rose by 36 percent in 2016 — highest among all LG companies.
LG Home Entertainment Company posted fourth-quarter revenues of $4.15 billion, an increase of 15.7 percent quarter-over-quarter as a result of strong sales of premium LG Oled and 4K Ultra HD TVs in North America, Europe and Asia.
Last year’s operating profit of $1.07 billion was the highest in the history of the Home Entertainment Company and 2016 revenues of $15.08 billion were the highest among all LG business units.
The LG Signature Oled TV W7 series and a broadened line-up of LG Oled TVs are expected to strengthen LG’s industry leadership in the premium TV segment.
LG Mobile Communications Company reported revenues $2.51 billion in the fourth quarter of 2016, an increase of 15.4 percent quarter-over-quarter due in large part to strong sales of the new V20 flagship smartphone.
Profitability was hampered by weak sales of the G5 smartphone and higher marketing investments.
Introduction of the next G Series phone and mass-tier devices in the second quarter are expected to help greatly improve the LG Mobile Communications Company’s market position in 2017.
LG Vehicle Components Company ended the year with a solid $2.4 billion in sales, an increase of 51 percent from the previous year.
Strong growth in electric vehicle components and infotainment systems boosted the unit’s fourth-quarter revenue to $749.2 million, 66.4 percent higher year-on-year.
Sales grew steadily in each quarter of 2016 but investments in research and development negatively affected profitability.
With the production of the Chevrolet Bolt electric vehicle, co-developed with LG, under way and with demand growing for integrated electronics related to automotive infotainment and safety systems, the LG Vehicle Components Company expects to strengthen its competitiveness in 2017.
LG also reported revenues of $47.92 billion and a net income of $109.31 million for 2016.
Both the LG Home Appliance and Air Solutions Company and LG Home Entertainment Company posted their strongest operating profit ever in 2016, according to a press release.
LG, however, reported a net loss of $223.98 million for the fourth quarter because of losses from mobile communications and vehicle components.
LG Home Appliance and Air Solutions Company reported revenues of $14.92 billion for 2016 and $3.50 billion in the fourth quarter.
This was an increase of 5.6 percent year-over-year, driven in large part by strong sales in South Korean and North American markets where products such as TwinWash washing machines and door-in-door refrigerators continued to be popular.
The operating income rose by 36 percent in 2016 — highest among all LG companies.
LG Home Entertainment Company posted fourth-quarter revenues of $4.15 billion, an increase of 15.7 percent quarter-over-quarter as a result of strong sales of premium LG Oled and 4K Ultra HD TVs in North America, Europe and Asia.
Last year’s operating profit of $1.07 billion was the highest in the history of the Home Entertainment Company and 2016 revenues of $15.08 billion were the highest among all LG business units.
The LG Signature Oled TV W7 series and a broadened line-up of LG Oled TVs are expected to strengthen LG’s industry leadership in the premium TV segment.
LG Mobile Communications Company reported revenues $2.51 billion in the fourth quarter of 2016, an increase of 15.4 percent quarter-over-quarter due in large part to strong sales of the new V20 flagship smartphone.
Profitability was hampered by weak sales of the G5 smartphone and higher marketing investments.
Introduction of the next G Series phone and mass-tier devices in the second quarter are expected to help greatly improve the LG Mobile Communications Company’s market position in 2017.
LG Vehicle Components Company ended the year with a solid $2.4 billion in sales, an increase of 51 percent from the previous year.
Strong growth in electric vehicle components and infotainment systems boosted the unit’s fourth-quarter revenue to $749.2 million, 66.4 percent higher year-on-year.
Sales grew steadily in each quarter of 2016 but investments in research and development negatively affected profitability.
With the production of the Chevrolet Bolt electric vehicle, co-developed with LG, under way and with demand growing for integrated electronics related to automotive infotainment and safety systems, the LG Vehicle Components Company expects to strengthen its competitiveness in 2017.
