LG, Surges Back into Positive Earnings After Deciding on Future of Mobiles

LG Electronics said on Thursday that it has surged into positive earnings and recorded 18.8 trillion Won in sales. In the first quarter of 2021, days after making the announcement that it might part ways with the development of smartphones, the company has surged to significant heights.

Respectively, LG Electronics has recorded around 28% and 39% surge in sales and operating income respectively. They were the prominent tracks on which the South Korean conglomerate focused and the sightings of second-quarter growth are inevitable. LG mobile businesses, which were a shining highlight of the company a decade is no longer a front runner. Following that, it recorded 280 billion won in operating loss. The company is planning to exit the selling business for smartphones by the end of July.

The stellar performance in sales was backed by a double-digit cosmic return in its home appliances and TV business. LG said nearly 920 billion won and 403.8 billion won, respectively, in operating income, was gauged from both sectors. The dramatic overturn was overseen in the vehicle component business which recorded more than 1.90 million won in the sale, which was considered down and out by the end of last year.

The company aspirant buyers have gauged in numbers as well, and that has what driven the company sales to record such high growth. LG believes to move on the same track in the second quarter, backed by extravagant demand for home electronics and appliances due to the bolstering of major economies across the world amid the Covid-19 pandemic. The investments are sought to expand in the auto-making sector with firms competing in the current scenario of global chip shortage. The boost will get driven by artificial intelligence components, said the LG Electronics CEO.