LG Electronics expects the first quarter of this year to be the best quarter in history.
Recently, LG Electronics predicts that in the first quarter of this year, the company’s operating profit will increase by 39.2% year-on-year and 133.4% month-on-month to reach 1.52 trillion won, exceeding market expectations of 1.27 trillion won.
At the same time, LG Electronics predicts that in the first quarter of this year, its sales will increase by 27.7% year-on-year and 0.1% month-on-month to reach 18.81 trillion won, exceeding market expectations of 17.9 trillion won.
The quarterly sales and operating profit will both hit a single-season high.
According to LG Electronics, the first quarter of this year is expected to be the best quarter in history. The main reason is that household appliances and TV sales have soared due to “retaliatory consumption” after the epidemic.
According to a report from Sina Technology, the industry generally predicts that LG Electronics’ household appliances division’s operating profit in this quarter is expected to exceed 800-900 billion won for the first time, and sales may exceed 6 trillion won. The operating profit and sales of the HE department responsible for TV may reach 350 billion won and 3.6 trillion won, respectively.
LG Electronics’ mobile division continues to lose money. The industry generally predicts that its mobile division may lose about 200 billion won in the quarter.
Under the huge loss, LG Electronics decided to shut down the mobile phone business of the mobile division. On April 5, LG Electronics announced that it will officially shut down its mobile phone business on July 31 this year, and the inventory of some existing models will continue to be sold.
It is embarrassing that LG Electronics once became South Korea’s second largest mobile phone manufacturer. Lollipop, chocolate, ice cream and other series of mobile phones once represented the youth of a generation. However, according to reports, according to financial reports, LG Electronics’ mobile division has been losing money since the second quarter of 2015. As of the fourth quarter of 2020, the division has accumulated losses of up to 5 trillion won (approximately RMB 29.38 billion).
In the future, after getting rid of the “baggage” of the mobile phone business, LG Electronics will further focus its resources on electric vehicle parts, smart homes, robots, artificial intelligence and other fields.