LG posts record profits for 2018, mobile division still losing money
LG is doing great – it just announced a record yearly revenue of $54.4 billion and record profit of $2.4 billion, 10% higher than in 2017. The mobile division is weighing it down, however.
LG Mobile had a revenue of $7.08 billion and posted an operating loss of $700 million. The company claims that the division is showing signs of improvement thanks to better control on spending and inefficiencies.
This year LG will rely on operator-driven markets (North America and Korea) for stable sales and will push 5G phones and devices with “different form factors” to try and go back in the black.
LG Home Entertainment posted a record profit of $1.35 billion. It will lean on its premium OLED TVs and large 4K TVs to increase revenue and profits.
LG Home Appliance also posted a record profit of $1.35 billion and was LG’s strongest performing unit in 2018.
LG: Home Entertainment • Home Appliance and Air Solution • Vehicle Components
The LG Vehicle Components Company took in $1.24 billion, the highest in the division’s history. This is attributed to the high demand for infotainment hardware and a strong performance of ZKW. LG acquired 70% of ZKW’s shares in 2017 for €1.1B, the largest acquisition in the Korean company’s history.