LG Electronics reports record fourth quarter

LG Electronics posted operating income of 647 billion won and sales of 18.8 trillion won in the fourth quarter of 2020, the company said on Friday in its preliminary earning guidance.

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Image: LG Electronics

LG Electronics reported preliminary fourth quarter results on Friday afternoon, with the company posting 647 billion won in operating income, and sales of 18.8 trillion won.

It is a rise of 536% and 16.9%, respectively, from the same time period a year ago.

It is LG's best fourth quarter earnings on record and a return to form for the Korean electronics maker. The company had posted operating income of 98.6 billion won and sales of 16 trillion won in the fourth quarter of 2019, its weakest performance during that year.

For the full year of 2020, LG posted operating income of 3.19 trillion won and sales of 63.26 trillion won, a rise of 31% and 1.5%, respectively. It is the first time that the company had marked over 3 trillion won in annual operating income.

LG is expected to announce its full earnings at the end of the month.

The company saw its operating income rise 22.7% year-on-year in the third quarter, thanks to strong sales of its home appliances and TVs.

Pent-up demand following the easing of lock down measures from the COVID-19 pandemic had helped this increase.

This high demand is expected to have continued throughout the fourth quarter of 2020, leading to increased profitability. However, the company's mobile business is expected to stay in the red for the 23rd consecutive quarter.

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