Samsung, LG post record earnings in Q1

Apr 30, 2021, 08:19 am

AsiaToday reporters Hong Sun-mi & Park Ji-eun

Both Samsung Electronics and LG Electronics achieved their highest-ever quarterly sales and operating profits in the first quarter, driven by demand for high-end home appliances, TVs and smartphones.

This year, consumers continued to spend more time at home due to the pandemic. However, Samsung’s semiconductors unit recorded sluggish performance due to the Texas power outrage that shut down its Austin, Texas, foundry for a month. LG’s mobile unit, which decided to end its handset business in July, recorded an operating loss of 280 billion won in the first quarter.

Samsung Electronics posted 65.39 trillion won in sales and 9.38 trillion won in operating profit, up 18.19 percent and 45.53 percent from a year earlier. The record-high sales in the first quarter was driven by its smartphones as well as premium TVs and home appliances.

Its smartphone business posted 29.1 trillion won in sales, owing to success of its flagship Galaxy S and midrange Galaxy A series.

The consumer electronics business of Samsung also led the high performance due to expanded sales of the Bespoke lineup and QLED TVs. In particular, newly-launched Neo QLED models, accounting for half of the sales of QLED TVs, drove the growth of the premium TV market.

On the other hand, the semiconductors unit raised 3.37 trillion won in operating profit, down 16 percent from the same quarter last year. “A shutdown at the Austin plan last February cost more than 300 to 400 billion won in losses,” said Han Seung-hoon, a senior vice president at Samsung’s foundry business.

LG Electronics posted 18.81 trillion won in sales and 1.52 trillion won in operating profit, up 27.7 percent and 39.1 percent from a year earlier.

LG’s H&A business exceeded the 900 billion-won mark in operating profit for the first time in the company’s history, led by strong sales of clothes dryers and steam closets as well as success of its newly-launched Object Collection.

According to LG Electronics, its home appliance sales and operating profit in the first quarter ranked No. 1 in the world, surpassing rival Whirlpool. The home entertainment (HE) division that mainly sells TVs raised 403.8 billion won in operating profit with revenue of 4.01 trillion won thanks to high sales of premium products including OLED TVs. Sales reached the 4 trillion won level in three years.

#Samsung #LG #earnings