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| An LG Electronics employee explains the functions of the steam clothing care system "Styler" at the tech firm's pop-up store in Sinsa-dong, Seoul, in this 2018 file photo. / Courtesy of LG Electronics |
By Kim Jae-heun
LG Electronics is expected to retain the No. 1 spot in the global home appliance market for the second consecutive quarter, showing off its solid grip in the sector amid the COVID-19 pandemic.
According to the industry, LG Electronics second quarter earnings in the home appliance sector is predicted to record between 5.2 trillion won to 5.3 trillion won. This is around 300 billion won more than the previous leader, Whirlpool.
The U.S. home appliance giant said it recorded 4.93 billion won sales in the second quarter, down 22 percent compared to the same period last year. Despite the decline, its performance is better than many expected after the COVID-19 pandemic forced the shutdown of electronics retailers such as Best Buy in the United States.
LG is expected to outperform Whirlpool for the second consecutive quarter after surpassing it in the first quarter by 255.7 billion won on earnings of 5.41 trillion won.
The initial outlook for LG Electronics' Q2 performance was negative due to the pandemic; but changed with the resumption of operations at major retail stores in the U.S. and Europe.
In the domestic market, LG capitalized on its newly released high-end appliances including clothes dryers, dishwashers and its steam clothing care system, "Styler." Starting June, profitability rose with an increase in sales of air conditioners.
Whirlpool only earned 94 billion won in operating profit between April and June, a sizeable drop compared to the same period last year when it recorded 222.8 billion won.
Electrolux recorded a loss of 7.8 billion won in the second quarter.
KB Securities estimates the Korean firm to record up to 650 billion won in profit for the second quarter.
Unlike Whirlpool, whose operating profit fell 6 percent in the first quarter and 1.9 percent in the second, LG Electronics is expected to keep its profit stable for the same period.
Samsung Electronics is also expected to do well in the home appliance sector.
Hana Financial Investment predicts Samsung's sales in the home and medical appliances sector to reach 4.7 trillion won in the second quarter, up 50 billion won from the first.
Samsung's operating profit is expected to jump from 88 billion won to 293 billion won over the same period.
