LG set for record home appliance profits

LG Electronics is forecast to reap a record profit from its home appliance business this year, due to high sales of premium items at home and abroad, according to industry sources on Sunday.

As of the third quarter of 2020, LG posted an accumulated operating profit of 2.5 trillion won ($2.27 billion). Some 2 trillion won of that amount was from the company’s home appliance and air solutions business, which sold premium products like the Tromm Styler clothing care system and the DIOS dishwasher.

The Tromm Styler electronic closet, launched in 2011 and featuring LG’s proprietary steam technology, was one of several products that attained significant popularity globally, contributing to the strong performance.

According to the company, total overseas unit sales grew more than 50 percent over last year in around 20 countries.

In countries like Russia, sales volume more than doubled, the company said. 

Its patented technology True Steam can kill 99.99 percent of bacteria and some viruses. These include the influenza A virus (H3N2) as well as an adenovirus that affects dogs (ICHV), a herpes virus that affects cows (IBRV) and a coronavirus that affects pigs (PEDV).

LG’s home appliances featuring the steam technology, including its dishwasher and dryer, enjoyed high sales throughout the year, largely owing to the stay-at-home trend under the pandemic and the consumer preference for products to improve hygiene at home.

Market analysts expect LG to break its previous records and achieve around 3.4 trillion won in annual operating profit and approximately 63 trillion won in sales by the end of the year.

Its highest sales figure so far was 62.3 trillion won in 2019, while its largest operating profit was 2.7 trillion won in 2018.

In the United States, LG is expected to snatch the No. 1 position in the home appliance market, beating local rival Whirlpool, the figures suggest.

By Song Su-hyun (song@heraldcorp.com)