South Korea’s electronics corporation LG has announced its yearly financials for 2017. The company has, for the first time, seen the highest full-year revenues in its history with a 10.9 percent jump to record USD 55.4 billion in revenue from the previous year, 2016.
These numbers include USD 2.23 billion in operating profits, the highest amount for the company since 2009 and a markedly high jump from 2016. A significant share of profits was attributed to strong performance in premium home appliances and TVs.
Revenues for the fourth quarter in 2017 grew by 15 percent compared to 2016 to register USD 15.3 billion. This same quarter generated strong operating profits OF USD 330.9 million.
By departments, the LG Home Appliance and Air Solutions Company reported USD 17.34 billion in revenues for 2017. This category includes the sale and distribution of washing machines, refrigerators, among other energy-saving home appliances. It should also be noted that this department registered the lion’s share of LG’s revenues and profits.
The Home Entertainment department that distributes premium OLED TVs and top of the line sound systems reported full-year revenues of USD 16.85 billion, a 7 percent appreciation from 2016.
The Mobile Communications department has not made any profit for some time. This is attributed to LG’s little marketing efforts for its excellent high-end mobile devices. The segment also faces stiff competition from its home rival, Samsung, and other affordable handsets from tens of China-based OEMs. In fact, the encroachment of affordable brands especially in the local market have ousted the LG out of the market, with little to no official availability of LG phones save for some third-party retailers.
Nonetheless, the brand posted annual sales of USD 10.52 billion. Fourth quarter revenues increased to USD 2.77 billion, which did not turn any profit as the division recorded a loss of USD 193.33 million.
Lastly, the Vehicle Components division saw a marginal drop in operating profits due to temporary decrease in sales in infotainment business and investments in new business. On the bright side, full year sales increased by 26 percent from the previous year to record USD 3.15 billion.