LG Electronics-Company Profile

From DolceraWiki
Jump to: navigation, search

Key Information

LG Electronics Ltd.(LGE)
Revenues 2010: $48.27B
2009: $43.52B
2008: $44.84B
Revenue CAGR (2008 - 2010) 3.8%
Net profit (2010) $1.14B
Net profit CAGR (2008 - 2010) 67.2%
R&D expenses (Percentage of Revenue) 2010:$1397.35M (2.37%)
2009:$1182.33M (2.29%)
2008: $424.07M (0.82%)
Number of employees 82,772
Year Established 1958
Headquarters Seoul, South Korea
Key People Koo Bon-joon (CEO)
Principal areas of business Consumer Products Manufacturers: Consumer Electronics, Audio Equipment, Video Equipment, Appliances, Telecommunications Equipment
Segmental breakdown based on turnover (2010) Home Entertainment 20.48%
Mobile Communications 12.84%
Home App 9.90%
Air Conditioning 4.47%
Business Solution 4.48%
Geographical breakdown based on turnover(2010) Europe (17%)
North America (22%)
South America (13%)
Korea (15%)
P R China (8%)
Asia (20%)
ROW (5%)
Main Subsidiaries (2010) LG Display (37.9%)
LG Innotek (50.60%)
Recent Acquisition Summary - Acquired Air-conditioning Division of LS Mtron for KRW 150 billion on 10th March 2011
- Acquired Rental Business of Healthcare Rental Co. Ltd.
Recent License Deals Summary - Rovi and LG Electronics signed a licensing deal on 22nd June 2011 to further integrate DivX Technology in LGs consumer electronics products

Overview

Vision

LG Electronics continues to pursue its 21st century vision of becoming a worldwide leader in digital—ensuring customer satisfaction through innovative products and superior service while aiming to rank among the worlds top three electronics, information, and telecommunications firms by 2010.

Years in Business

53 Years

Industry Type

Consumer Products Manufacturers

• Consumer Electronics

• Audio Equipment

• Video Equipment

• Appliances

• Telecommunications Equipment

Stock Exchanges listed in with their codes

Primary Symbol & Exchange:066570 - Ordinary Shares – Korea

Other Symbol & Exchange: LGLD - GDR - London

Contact

20, Youido-dong, Yongdungpo-gu
Seoul 150-721
South Korea

Phone +82-2-3777-1114

Fax +82-2-3777-3428

URL: http://www.lg.co.kr; http://www.lge.co.kr

Major Subsidiaries

Sr. No SUBSIDIARIES AND AFFILIATED COMPANIES Stake
1 LG Display 38%
2 LG INNOTEK 48%
3 Hi Plaza 100%
4 Hi Business Logitics 100%
5 LG Ericsson 50%
6 Hi M Solutek 100%
7 Hi Tele Service 100%
8 LG Public Small Business Cooperation Fund 50%
9 Innovation Investment Fund 83%
10 K-TV Tech Investment Fund 100%

List of all subsidiaries (77)

Company Financials

Revenue Trends - 2006 to 2010

Revenue trend11.jpeg

Profit Trends - 2006 to 2010

Profit trend LG.jpeg

Geographical Analysis

Lg geography.jpeg

Shareholding Pattern

Major Shareholders Stake
LG Corp. 34.80%
National Pension Service 5.04%

Major Segments of LG Electronics

Typical Products of LG Electronics can be classified in following categories

LG segments.jpeg


Revenue Breakdown among Various Categories based on 2010 Sales

LG revenue segment.jpeg

Stock Performance of LG Electronics in 2010

Stock Price:

• Share Price (20-May-10): 101,000

• 52-Week High (02-Sep-09): 148,500

• 52-Week Low (20-May-10): 101,000

• Currency: KRW

Dividend Information:

• Dividend: 1,750 KRW

• Pay Date: April 16, 2010

• Ex-Dividend Date: December 29, 2009

SWOT Analysis of LG Electronics

LGE.jpg

Porter's 5 Forces analysis- Display Industry

Porter1.png

Analysis of display business

LG Display accounted for approximately 30% of LGE's revenues in 2010. Display business is capital-intensive, competitive and cyclical.


Diaplay mkt breakup.jpg

LCD display market in 2010

Segmentation.png

Large Area TFT market

Year on year there was an increase in shipments for all the products of large area TFT LCD. In total the revenue grew by 25% in 2010 up from 20% in 2009. After recession and a laggard growth of 11.5% in 2008, the market has picked up and the revenue is growing.

  • Market revenue overall is growing, but the most promising product and market that uses this technology is Television. With a growth of 42.9% in 2010 up from 32.4% in 2009, the market looks profitable.
  • Notebook PC market also looks profitable, with a growth rate of 31.7%, but a decline from the previous year from 36.6%. The OLED technology is eating up the market share of the TFT LCD market share in this market.