This year, Samsung Electronics and LG Electronics forecast the largest sales since their founding. Based on a brokerage report, Samsung’s Q4 performance was expected to be KRW 75.26 trillion in sales and KRW 15.07 trillion in operating profit.
Sales topped the previous high of KRW 73,979.2 billion in Q3 2021, and operating profit is set to rise by 67% over the same period last year, reports Korea IT News. Samsung is predicted to earn an all-time high of KRW 278.67 trillion this year, exceeding the KRW 243,771.4 billion it earned in 2020. Operation profit is estimated to reach KRW 52.83 trillion, the highest level since the semiconductor super-boom in 2018.
In Q4 2021, LG Electronics is forecast to generate KRW 19.67 trillion in revenue and KRW 831.3 billion in operating profit. After generating KRW 18 trillion in Q3 2021, this is the first time in history that the company has established two new records in a row. Operation profit fell short of the record high set in Q1 this year (KRW 1.516 trillion).
Nonetheless, Samsung predicted growth of more than 27% over the same period last year. For the first time in history, annual sales will likely exceed KRW 70 trillion, reaching KRW 73.70 trillion. For the first time, operation profit will likely surpass KRW 4 trillion.
Home Appliances, Air Solution and TV account for LG’s sales
The Home Appliances and Air Solution (H&A) and TV (HE) businesses of LG Electronics accounted for most of the company’s earnings. In Q3, the H&A business division’s quarterly sales reached KRW 7 trillion for the first time. New home appliance sales, such as stylers and dryers, also reached new highs. Aside from OLED TV, which achieved a new high by more than tripling shipments over the previous year, the company also improved its performance in the Vehicle Component Solution (VS) division, which is growing orders in the reviving car market.
In 2022, both Samsung and LG Electronics will continue to showcase growth. Samsung Electronics is likely to surpass KRW 300 trillion in annual sales for the first time. With significant premium TV sales and a reversal in the electronics market, LG Electronics is predicted to generate KRW 76 trillion in sales and KRW 5 trillion in operating profit.
Meanwhile, Samsung Electronics and LG Electronics will release preliminary results for Q4 2021 around January 6-7, which would provide an accurate picture.