LS Industrial Systems Co. (LSIS) achieved a new milestone in its sales last year on the back of growth in its power infrastructure and smart energy businesses.
LSIS announced on Jan. 29 that it posted 2.49 trillion won (US$2.22 billion) in annual sales and 205.10 billion won (US$183.29 million) in operating profit last year. The company saw its sales figure increase by 6 percent and operating profit by a whopping 29.4 percent compared to a year earlier.
The company’s growth in sales and profitability were driven by its power infrastructure business, which is the company’s next growth engine. The company’s sales of high voltage transformers, high voltage direct current (HVDC) transmission systems and gas insulated switches (GIS) all increased as it secured orders from the Korean government and received a series of large private projects.
The company’s electricity and automation equipment business, which has traditionally been a cash cow, propped up its performance. It benefited from continued domestic investment in the IT and water treatment sectors.
The company’s smart energy business, which is considered a new growth engine, also showed a rebound in sales and succeeded in turning a profit. The energy storage system (ESS) business won orders mainly from domestic energy-guzzling companies, including SeAH Group, Samyang Group and LS-Nikko Copper Inc., last year. The company also recorded a profit in the direct current (DC) relay business thanks to the rapid growth of the market for electric vehicles and hydrogen-powered vehicles at home and abroad.
LSIS is planning to expand its main businesses further this year despite growing global uncertainties due to a decrease in IT investment, a trade dispute between the United States and China and exchange rate fluctuations. In particular, the company will develop the domestic and global markets with its products with unrivaled competitiveness, including renewable related DC power equipment.