LG published a report on its financial performance in 2019, boasting a record-breaking sales of $53 billion. The company recorded operating profits of $2.07 billion, 10% down from 2018, which LG explains with the additional investments it made in marketing and developing future tech.
Most of the money came from the LG Home Appliance & Air Solution Company. It brought it a third of the revenue ($18.29 billion) and most of the operating profit ($1.7 billion). This division set company-wide records for both the revenue and profit it delivered this year.
The financials for the fourth quarter – $3.92 billion in revenue (up 7% YoY) and operating income of $103.86 million (up 8.5%) – are a company record for Q4. The increased performance was thanks to healthy demand in North America and Europe.
The LG Mobile Communications Company is still struggling. The yearly revenue of $5.07 billion lead to a $858.34 million loss, due to higher marketing costs needed to support LG’s flagship devices.
Looking forward, LG is pinning its hopes for 2020 on cost-cutting measures and selling 5G smartphones in the mid-range and premium segments.
The LG Home Entertainment Company brought in $13.73 billion in revenue with an operating income of $833 million. These numbers are relatively unchanged from last year.
The LG Vehicle Component Solutions Company deserves a pat on the back. The $4.65 billion in revenue is up 27% from 2018, the highest annual sales in this division’s history. It did post a loss of $165.6 million for the year, but LG expects the market to pick up in 2020 as European environmental regulations tighten and demand for electric and hybrid cars increases.