LG reports record revenue growth in the first quarter of 2021
South Korean electronics maker LG reported record revenue in the first quarter of 2021. Total sales in three months were 18.8 trillion won (about $ 17 billion), and operating income was 1.52 trillion won (about $ 1.3 billion). Compared to the same reporting period last year, the indicators increased by 28 and 39%, respectively, becoming the highest in the company’s history.
The company’s record performance is underpinned by double-digit growth in the production of household appliances and televisions. LG notes that these divisions generated 920 billion won (about $ 828 million) and 403.8 billion won (about $ 363 million) in operating profit, respectively.
There are also negative indicators in the presented report. The operating loss of LG’s mobile division was 280 billion won (about $ 252 million). It is reported that the manufacturer is going to exit the smartphone production business by the end of July this year due to the ongoing unprofitability of this direction.
The auto parts business generated just under 1.90 trillion won (about $ 1.7 billion) in the first quarter, up 43.5% from the first quarter of 2020. The company also noted that creating a joint venture with Magna International for the production of electric vehicle components would be completed by July 2021.
Corporate shipments of PCs and monitors brought the South Korean manufacturer an operating profit of 134 billion won (about $ 120 million).
The company noted that it expects similar financial results for the second quarter of 2021. LG also said it plans to expand its automotive parts manufacturing, artificial intelligence, and business development to strengthen its position in these market segments.