LG Australia Profits Slump 29% After Exit Of Senior Executives
At June 30th the Company declared revenues of 725,929,000 million but only managed to declare a profit of $9,150,000.
In the prior year the Korean Company declared revenues of $709M and profits of $12.8M.
The Company that has been described as having a toxic culture saw the exit of Marketing Director Lambro Skropidis, and mid last month Sales Director Michael Doyle who had been responsible for delivering key relationships with retailers for LG Australia.
When asked earlier this week how his new job as Marketing Director at Electrolux was going Skropidis said “It’s a very different culture than LG. Very refreshing, I am working with management that have a lot of skill and are knowledgeable”.
ChannelNews understands that several senior sales executives have been approached to fill the vacant sales role at LG, but many have refused the role due to the Eastern Creek location of LG Australia and the known culture issues at LG Australia.
What is not known is whether LG Australia is engaging in transferring the ownership of goods to a tax haven Company after being manufactured and shipped to Australia, similar to the practises adopted by Apple, Microsoft and several other large consumer electronics and appliance Company.
ChannelNews is aware that several appliance and consumer electronics Companies are currently facing audits by the Australian Taxation Office due to low profit returns being declared in Australia.
LG who 18 months ago launched a new range of notebooks, tablet, all in one PC’s and Chromebooks appear to be struggling to get traction in the PC market with no mass retailers now ranging their notebook or all in one PC range.
A visit to the LG web site reveals that several PC products are still listed on the Company’s web site including a $1,999, 13.3″ notebook however no retailers where consumers can buy the product are listed the same applies for a $1,899 Tab Book, $699 LG All in One PC and a $699 Chromebook.
Some PC products are listed as being available at online retailers such as Scorptec.
In the tablet market an LG 10″ tablet is listed as being available at Harvey Norman however a visit to the Harvey Norman web site reveals that no LG PC products are listed.
LG Australia Public Relations Manager Philip Anderson, who last week failed to tell Australian journalists that LG Australia was taking legal action in the Australian Federal Court against UK Company Dyson for misleading advertising, despite Korean news services being given the story by LG Electronics, Korea has not returned our telephone calls regarding questions about the Companies performance, or its failure to get traction in the PC market which has seen the exit of both Sony and Samsung during the past 18 months.