Ahead of Whirlpool, Electrolux in Sales, Operating profic
LG Electronics is expected to surpass Whirlpool as the world's No. 1 consumer electronics company in the first half of 2020.
Whirlpool announced that its second-quarter sales stood at US$4.042 million (about 4,934.5 billion won). The figure was down 22 percent from the same period of 2019 and 7 percent from the previous quarter.
The result far exceeded the original forecast, considering the fact that most large consumer electronics stores such as Best Buy in the United States had been "shut down" until May due to the spread of the COVID-19 virus. A stay-at-home lifestyle became common in the U.S. as in Korea, fueling replacement demand for household and sanitary appliances. COVID-19 disaster relief funds also played a role, analysts say.
LG Electronics is scheduled to release its earnings at the end of July. It is expected to eclipse Whirlpool in performance. LG Electronics unveiled its tentative second-quarter earnings earlier July. The company estimated sales of its home appliance division at 5.2 trillion won to 5.3 trillion won, which is 200 billion won to 300 billion won higher than those of Whirlpool.
In terms of profits, LG Electronics is expected to have overwhelmed Whirlpool. Whirlpool's second-quarter operating profit is around US$77 million (94 billion won). The securities industry estimates that LG Electronics posted a surplus of 500 billion won to 600 billion won. It also estimates that Electrolux of Sweden, another global home electronics giant, posted 2.96 trillion won in sales in the second quarter, less than 3 trillion won.
However, it remains to be seen whether LG Electronics will be able to take the top spot globally in the second half of 2020, too. LG Electronics' sales usually fall slightly in the second half of a year compared to the first half when sales of air conditioners are included. Whirlpool's sales are steady in the second half due to a year-end spike in sales such as Black Friday.
Meanwhile, LG Electronics announced on July 26 that Consumer Reports of the United States selected its Drum Washing Machine (model name: WM3500CW) and tubular washer (model name: WT7900HBA) as the best drum washing machine of the year and the best high efficiency tubular washing machine, respectively.