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LG Profits Quadruple on Appliances

The operating profit was 27 percent lower than the average estimate…reports Asian Lite News

LG Electronics said on Thursday that its fourth-quarter operating profit more than quadrupled from a year earlier on robust sales of home appliances and automotive parts.

South Korea’s leading electronics company said in a regulatory filing that operating income for the October-December period came to 313.1 billion won ($234.3 million) on a consolidated basis, sharply up from 69.3 billion won a year ago.

The operating profit was 27 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Net loss reached 76.4 billion won, narrowing from a deficit of 212.4 billion won the previous year.

Its sales rose 5.7 percent on-year to 23.1 trillion won.

For all of 2023, its sales edged up 0.9 percent on-year to a record 84.2 trillion won, with its operating profit reaching 3.5 trillion won. Its annual sales hit a record high for the third consecutive year.

LG Electronics said its thriving home appliances and automotive parts businesses contributed to the strong bottom line last year.

The combined sales of the company’s two leading business divisions amounted to 40 trillion won in 2023, up from 18 trillion won tallied eight years ago.

The two sectors accounted for a combined 47.8 percent of the company’s consolidated earnings, compared with 32.5 percent eight years ago.

LG Electronics said its other business-to-business sector and platform-based service business, including air solutions businesses and content subscription service, also lent support to the strong operating profit.

LG Electronics’ conventional home appliance business logged yearly sales of 30.1 trillion won, recording positive growth for eight straight years. The sector’s operating profit surged 76 percent on-year to 2 trillion won.

The company earned 14.2 trillion won in sales and 362.4 billion won in operating profit from its TV business.

Its vehicle components business, one of LG Electronics’ future growth drivers, posted a record 10.1 trillion won in sales and 133.4 billion won in operating profit.

Shares of LG Electronics rose 0.11 percent to 94,000 won Thursday, outperforming the broader KOSPI’s 0.03 percent gain. The earnings report was released before the market closed.

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Business Economy Tech Lite

LG aims to hit $79 bn in sales by 2030

In the future, LG plans to accelerate future development by selecting and concentrating on new businesses that are expected to have similarly high growth potential…reports Asian Lite News

LG Electronics aims to spend $39.5 billion in research and development, facility and strategic investment as it aims to reach $79 billion in sales by 2030, up from $51.4 billion last year.

By 2030, the company aims to double sales for its heating, ventilation and air conditioning (HVAC) business and become a global top-tier comprehensive air conditioning company.

LG Electronics (LG) declared its vision to transform from its current position as a top global home appliance brand to a “smart life solution company” that can connect and expand customers’ diverse experiences while driving for global annual revenues of KRW 100 trillion by 2030.

“LG will continue to pursue its bold vision to transform and leap forward as a smart life solution company that connects and expands customers’ various spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products,” CEO William Cho said in a statement.

“We will establish a brand-new LG by reinventing the way we work and communicate toward this goal,” he added.

To start, as of the end of this year, LG’s TV business is projected to make a great transformation based on its webOS operating system, which powers more than 200 million smart TVs around the world.

The company will invest more than KRW 1 trillion over five years to strengthen the content competitiveness and drive growth of LG Channels – an advertising-based free broadcast platform.

Over the past two years, considering market conditions and evolving business model strategies, the company boldly exited its mobile phone and solar panel businesses and, instead, focused resources on future high-growth areas.

In the future, LG plans to accelerate future development by selecting and concentrating on new businesses that are expected to have similarly high growth potential.

The company is also continuing its strategic investment in digital healthcare.

“LG’s EV charging business has an aim to provide an integrated solution that encompasses the control area, not just the sales of chargers,” it said.

Cho said LG will focus on the transition to the platform-based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience.

By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 per cent.

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Business STARTUPS News Tech Lite

LG teams up with Canadian startup for AI chips

The collaboration is expected to boost “AI-enhanced features and high-performance computing in LG’s future premium TVs…reports Asian Lite News

LG Electronics and Canadian AI computing startup Tenstorrent said on Wednesday they are working together to develop next-generation chips that could potentially power the South Korean tech company’s smart consumer appliances and automotive products.

Tenstorrent, founded in 2016, builds computers for artificial intelligence (AI). CEO Jim Keller is a microprocessor engineer, best known for his work at AMD and Apple, reports Yonhap news agency.

The collaboration is expected to boost “AI-enhanced features and high-performance computing in LG’s future premium TVs, high-performance automotive chips and other smart products,” the Toronto-based tech company said.

“This collaboration is just the beginning. Tenstorrent’s market leading AI and RISC-V CPU technologies will strengthen SoC competitiveness of LG’s future products, while our longtime proven video codec technology will help Tenstorrent take control of data center high-performance processor markets,” said Byoung-hoon Kim, CTO of LG.

“Chiplets will be tested through this collaboration to see whether they can become a technology platform of collaboration. Tenstorrent and LG will share technology road maps and keep extending the scope of collaboration,” Kim added.

LG has stepped up its efforts to diversify its business portfolio in recent years, aggressively advancing into the electric vehicle (EV) component business, robotics and EV charging services, among others.

Its shares hit a 52-week high to close at 124,900 won on Tuesday over the rosy growth prospects for its future businesses.

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Business

LG Electronics operating profit falls in Q4

For 2022, South Korea’s No. 2 home appliances maker posted an estimated 3.54 trillion won in operating profit, down 12.6 percent from a year earlier…reports Asian Lite News

LG Electronics estimated its fourth-quarter operating earnings at 65.5 billion won ($51.6 million), down 91.2 per cent from a year earlier.

Revenue increased 5.2 percent on-year to 21.85 trillion won, marking a quarterly high, according to the earnings guidance released by the company. But it did not release the data for net income.

The operating profit was 79.5 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

For 2022, South Korea’s No. 2 home appliances maker posted an estimated 3.54 trillion won in operating profit, down 12.6 percent from a year earlier.

Its annual sales expanded 12.9 percent on-year to a record 83.46 trillion won, with the data for net profit not available.

It is the first time the company logged more than 80 trillion won in annual sales.

LG Electronics did not disclose detailed terms of the fourth-quarter earnings, but experts said that a hike in raw material prices, increased marketing costs and the weakening Korean currency have likely undermined the company’s bottomline for the October-December period.

In particular, global demand for televisions has dampened due to the protracted Russia-Ukraine war, while rising promotion costs to sell its inventory was also a factor in the sharp quarterly drop.

But LG Electronics is expected to retain the No. 1 title in the world home appliances market in terms of sales, followed by US Whirlpool, for 2022. The Korean company rose to the top position in 2021 for the first time.

Its EV components business, on the other hand, is likely to remain in the black on the back of growing demand amid the gradual easing of the auto chip shortage and a subsequent rise in auto production.

Analysts expected LG Electronics to make a turnaround in the new year on decreased logistical costs and raw material prices.

“LG Electronics will likely post 1 trillion won in operating profit thanks to sales growth in overall business, including home appliances,” said Kim Dong-won from KB Securities.

Shares in LG Electronics closed up 0.89 percent to 90,700 won on the Seoul bourse Friday, underperforming the broader KOSPI’s 1.12 percent gain. The earnings guidance was released after the market closed.

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Tech Lite

LG develops ‘Invisible’ speakers for cars

The device uses the company’s unique technology to vibrate off display panels and various materials inside the car body to provide a rich, 3D immersive sound experience…reports Asian Lite News

LG Display has announced that it has developed the “Thin Actuator Sound Solution”, a new sound technology for automobiles.

While traditional speakers are large and heavy due to components such as voice coils, cones and magnets, LG Display’s film-type exciter technology makes the “Thin Actuator Sound Solution” extremely thin and light, making it an invisible speaker for cars.

“We have transformed the conventionally heavy and bulky speaker into a high-quality ‘invisible’ sound solution by using our cutting-edge technology to elevate space, design, and eco-friendly factors and provide a next-level sound experience like none before,” Yeo Chun-ho, Vice President and Head of the Business Development Division at LG Display said in a statement.

The new speakers come in a passport-like size (150mm x 90mm) with a thickness of 2.5mm, equivalent to that of two coins stacked together, and a light weight of 40g, making it just 30 per cent of the weight and 10 per cent of the thickness of a conventional car speaker, according to an official report.

The device uses the company’s unique technology to vibrate off display panels and various materials inside the car body to provide a rich, 3D immersive sound experience. Moreover, the compact size and innovative form factor of the speaker enable it to be installed in various parts of the car including the dashboard, headliner, pillar, and headrests while eliminating deviations in audio quality, the report added.

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India News Tech Lite

LG’s costly earbuds launched in India

Product also has Balanced Sound for ultimate and most enhanced listening and personal audio experience for users…reports Asian Lite News

LG Electronics on Wednesday launched ‘LG Tone Free FP Series earbuds’ at Rs 13,990 in the Indian market.

The earbuds are equipped with a unique and innovative UVnano charging cradle with ultraviolet light that sanitises the earbuds, and kills 99.9 per cent bacteria.

“The new model of ALG Tone Free earbuds has been upgraded with innovative features with the unique UV Nano and Meridian Technology. We are confident, these earbuds will be the perfect solution for audiophiles looking for a combination of hygiene and quality and the very best that audio technology has to offer,” Hak Hyun Kim, Director- Home Entertainment, LG Electronics India said in a statement.

The earbuds come with Active Noise Cancellation (ANC), specially engineered to reduce high-frequency noise encountered every day. The enhanced ANC blocks out the external sound by generating an equal amount of anti-noise. The improved driver can effectively detect and cancel noise to create a true high-fidelity experience that allows one to completely immerse in whatever they are listening to, the company claims.

The product also has Balanced Sound for ultimate and most enhanced listening and personal audio experience for users.

It comes with Medical Grade Silicon Ear Gel in 3 Different sizes which provides users with a proper fit and comfort. The ear gels are hypoallergenic and reduce skin irritation. Usually, consumers tend to misplace their earbuds, but, with the earbuds finder tool within the LG Tone App, they can be saved from facing this issue.

To activate the feature, consumers can download and connect with the Tone Free app from Google or Apple Play Store.

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Business Tech Lite

LG Electronics to launch new 55-inch OLED TV

Last month LG unveiled its 2022 TV lineup that includes the world’s biggest OLED TV at the Consumer Electronics Show (CES) in Las Vegas…reports Asian Lite News

LG Display has reportedly shared a proposal to LG Electronics to launch a new 55-inch OLED TV with a transparent display panel.

According to TheElec, the TV would come under the brand’s Home Entertainment Company. The display will be fixed on the TV like a traditional TV, unlike the company’s rollable OLED TV or smart bed that had a screen panel that could be pulled out.

LG Electronics has already made transparent OLED products. However, these models are only for enterprises rather than consumers.

As per report, the development for LG’s transparent OLED TV will likely begin during the second half of this year. On the other hand, the official launch could be set sometime in 2023.

Last month LG unveiled its 2022 TV lineup that includes the world’s biggest OLED TV at the Consumer Electronics Show (CES) in Las Vegas.

The company also said it will expand the new OLED evo lineup to 11 models of different sizes, compared with three models last year, to better meet customer needs.

LG also welcomed the possibility that Samsung Electronics could re-enter the OLED market this year after a decade-long hiatus.

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Business Economy

LG teams up with Apple

LG recently held a special promotion for iPhones, iPads and other Apple products on Lifecare, its online shopping mall for group employees, according to the sources….reports Asian Lite News

 LG Group, South Korea’s fourth-largest conglomerate, is apparently looking to beef up its business relationship with Apple, industry insiders said on Tuesday, amid rumours that its electronics affiliate may sell the US tech titan’s products at its retail shops.

LG recently held a special promotion for iPhones, iPads and other Apple products on Lifecare, its online shopping mall for group employees, according to the sources.

This was reportedly the first time that the group offered mobile devices from another smartphone manufacturer for its employee purchase programme, reports Yonhap news agency.

The move came amid growing speculations that LG Electronics may sell Apple products to local consumers at its 400 stores nationwide following its departure from the mobile business.

In April, LG Electronics announced that it will withdraw from the smartphone business by July after years of losses.

Industry insiders said LG Group is looking to boost business ties with Apple for its future growth. The group already has been providing electronics parts, including displays and camera modules, to Apple.

Recently, its electric vehicle (EV) parts joint venture with Magna International Inc., LG Magna e-Powertrain Co., has been linked with Apple’s possible self-driving car development.

LG Uplus, the group’s telecommunications unit, also started to develop an office working system compatible with Apple iOS for employees using iPhones.

Following LG’s exit from the mobile business, Apple has been trying to expand its presence in the South Korean smartphone market that is dominated by its archrival Samsung Electronics.

Apple recently launched a trade-in programme in South Korea to woo consumers with LG smartphones.

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