Outperforming US Competitor Whirlpool for Second Consecutive Year
LG Electronics has maintained its position as the world’s number one home appliance manufacturer for the second consecutive year, surpassing American competitor Whirlpool. On Jan. 30, Whirlpool reported annual revenues of US$19.455 billion and an operating profit of US$1.015 billion for the past year. Despite a 1.36% decrease in revenue compared to the previous year, the company successfully transitioned to profitability.
The Home Appliance & Air Solution (H&A) division of LG Electronics reported a revenue of 30.1395 trillion won (US$22.5664 billion), marking eight years of continuous growth and ushering in a new era of revenues exceeding 30 trillion won. During the same period, its operating profit reached 2.0078 trillion won, outperforming Whirlpool in both revenue and operating profit.
According to LG Electronics, this impressive performance is attributed to the enhancement of their dual-track strategy, focusing on both premium and volume zones, and the expansion of new business areas, including home appliance subscriptions.
Until 2020, Whirlpool held the top spot in the global home appliance market. However, in 2021, LG Electronics took the lead with revenues of 27.1105 trillion won. The following year, LG further cemented its leadership by outpacing Whirlpool in both revenue and operating profit.
In 2022, the H&A division of LG Electronics recorded revenues of 29.8955 trillion won and an operating profit of 1.1296 trillion won. In contrast, Whirlpool reported revenues of US$19.724 billion and an operating loss of US$1.056 billion during the same period. Whirlpool attributes this underperformance to the real estate market downturn caused by high-interest rates.