LG experiences spectacular Q1 outcomes as cellular division heads for the exit


LG introduced its cellular division shall be closed this 12 months because it can’t flip worthwhile within the present market. Nevertheless, the corporate’s report confirms all different branches have posted a yearly improve in gross sales, bringing the whole income to KRW18.8 trillion – probably the most LG has ever recorded between January and March.

Cell Divison Efficiency Q1 2021 This fall 2020 QoQ Change Q1 2020 YoY Change
Gross sales in KRW / USD 998.7B / 901M 1,385B / 1.24B -27.9% 998.6B / 901M 0%
Revenue in KRW / USD -280B / -252M -248B / -224M -12% -237B / -214M -18%

The largest grower was the House Leisure division. Individuals staying at house resulted in recovering demand in North America and Europe – historically worthwhile markets the place LG managed to increase its gross sales of OLED and NanoCell TVs. The upward development is predicted to proceed and shall be centered round premium merchandise.

The cellular enterprise is already performing its swan track – the ultimate try and salvage what’s left earlier than operations are discontinued later this 12 months. Throughout Q1 2021, LG managed to promote telephones price KRW998.7 billion, which is precisely the identical as Q1 2020 right down to the decimal level. There have been no new fashions launched and actions had been geared toward current fashions.

LG reports impressive Q1 results, mobile division prepares for exit

LG shall be redeploying all personnel inside the company, going for a liquidation of property, compensating companions and suppliers of service assist.

All gross sales actions of the Cell Communications division shall be terminated on the finish of July, and that’s when the Q2 report shall be out, disclosing the ultimate numbers, the place LG will present a breakdown between persevering with and discontinued operations.

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