South Korea’s LG Electronics Inc. is poised to become the world’s top white goods seller this year as its half-year sales from home appliance business are estimated to have exceeded that of U.S. rival Whirlpool, and demand for its premium electronics brand LG Objet Collection is growing stronger.
According to industry sources on Sunday, Whirlpool, which is due to release its second-quarter results on Thursday, is estimated to have earned $5.05 billion in sales, up 15 percent from a year-ago period. When combining the first-quarter number, its half-year sales are expected to have reached 11.63 trillion won ($10.17 billion).
LG Electronics earned 6.71 trillion won ($5.85 billion) in home appliance sales in the first three months, already beating Whirlpool’s sales in the same quarter by 740 billion won. As its second-quarter sales are estimated at 6.80 trillion won, the total sales from LG Electronics’ home appliance division in the first six months of this year are estimated to be nearly 2 trillion won larger than that of its American rival in the same period.
This large sales gap between the two rivals in the first half of this year is expected to help the Korean appliance giant cement its lead in sales for full year this year, analysts said, adding that this year would be different from last year.
LG Electronics beat Whirlpool in sales by 480 billion won in the first half of last year but failed to maintain its lead against the U.S. electronics giant for full-2020 after Whirlpool earned 1.07 trillion won more than its Korean rival in the second half thanks to the year-end blowouts like Black Friday.
Thanks to the pent-up demand for high-end home appliances by global homebound consumers, LG Electronics saw double-digit sales growth in overseas markets – 59.4 percent in China, 43.5 percent in Europe, 31.9 percent in Central and South Americas and 28.8 percent in North America.
The sales growth was mostly driven by the premium electronics lineup LG Objet Collection. Nearly half of its buyers chose premium models. To meet the growing demand, LG Electronics plans to bring the premium lineup to more countries in Asia and Europe after the launch in China in May.
The Korean tech giant currently is going all-out to ramp up output. Its global shipments of refrigerators expanded 53 percent on year to 3.44 million units in the first quarter, and air conditioners up 43 percent to 4.12 million units.
LG Electronics has injected $20.5 million to expand its laundry machine output from the U.S. plant in Tennessee.
LG Electronics shares were trading 1.56 percent lower at 158,000 won in Seoul trading at 9:47 a.m. Monday. Pulse News