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LG overtakes Whirlpool in profit for three consecutive years

LG overtakes Whirlpool in profit for three consecutive years

Posted February. 03, 2020 07:57,   

Updated February. 03, 2020 07:57


LG Electronics has recorded more profit than Whirlpool, the world’s top manufacturer of home appliances, for three years in a row. Although the Korean company still lags behind its American rival in revenue, the competition between the two companies is expected to be as fierce in 2020 as in previous years with LG Electronics narrowing the gap.

As of Sunday, Whirlpool’s 2019 profit, which was recently published, stood at approximately 1.571 billion U.S. dollars, slightly lower than 1.996 trillion won of the Korean manufacturer. Recording 1.4 trillion won in 2017 and 1.6 trillion won in 2018, the profit of LG’s home appliances has shown steady growth, overtaking Whirlpool for three consecutive years. “LG Electronics has moved quickly in the high-profit premium market,” said an expert, explaining the growth streak of the company.

While the first half of 2019 saw LG Electronics ahead of Whirlpool both in revenue and profit, special deals in Black Friday and Christmas seasons gave a boost to the year-end sales of the American firm to restore its place. “We will solidify our stance in the premium market as apposed to increasing marketing expenses to respond to the fierce competition in the second half of the year,” a source from LG Electronics.

Hyun-Seok Lim lhs@donga.com