LG's mobile, automotive businesses to make turnaround in 2021: CEO

All News 13:56 January 09, 2020

LAS VEGAS, Jan. 8 (Yonhap) -- LG Electronics Inc.'s mobile and automotive businesses are expected to make a turnaround next year, the company's CEO said Wednesday.

Brian Kwon, who took office as LG Electronics' CEO in late November, said the two struggling businesses that have been failing to make profits for years will be able to shift to the black next year.

"I have said in the past that our mobile communications business can make a turnaround in 2021, and that goal hasn't changed," Kwon said during a press conference at Consumers Electronics Show (CES) 2020 in Las Vegas, Nevada. "Also, based on our sales and costs, our vehicle components solutions unit can make a turnaround in 2021 and I will make it do so."

Earlier, LG announced fourth-quarter earnings guidance that was far below industry estimates.

The South Korean tech firm expected 98.6 billion won (US$85 million) in operating income in the October-December period, much less than the median forecast of 254.8 billion won in a survey conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency.

Kwon, however, said LG's fourth-quarter earnings did not indicate the company has a big problem.

"Most manufacturing companies have a similar earnings pattern," he said. "You have holidays and the year-end shopping season in the fourth quarter, during which companies make lots of sales with discounted prices but make less operating profit. Plus, companies set allowances for various risks."