close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
 
July 8, 2017

LG profit may miss estimates

Business

 
July 8, 2017

SEOUL: South Korea´s LG Electronics Inc estimated that its second-quarter operating profit rose 14 percent from a year ago, but fell short of expectations as the mobile division´s struggles likely continued.

LG, the world´s No. 2 television maker by sales behind Samsung Electronics Co Ltd, reported a preliminary April-June profit of 664 billion won ($574.49 million), versus a Thomson Reuters StarMine SmartEstimate of 755 billion won from a poll of 18 analysts.

Revenue likely rose 3.9 percent to 14.6 trillion won, the firm said, also lower than the 15.1 trillion won SmartEstimate. “It´s likely that the mobile division´s losses were well over 100 billion won, while profitability for both the television and appliances businesses were a bit weaker than what we had anticipated,” Dongbu Securities analyst S. R. Kwon said. The firm´s shares extended their losses following the weaker-than-expected guidance and closed down 4.2 percent, compared with a 0.3 percent fall for the broader market. While LG did not elaborate on its forecasts, analysts said its mobile business probably saw an operating loss for a ninth straight quarter due to subdued sales and increased marketing costs for its new G6 flagship smartphone launched in March.

Some analysts also said display panel prices have remained elevated during the second quarter, undermining margins for the TV business. Earlier in the day, Samsung reported its best-ever quarterly profit, beating expectations and putting it on track for record annual earnings on the back of a memory chip super-cycle. Seasonally weaker sales of home appliances in the second half of the year could hurt LG´s earnings, but year-on-year growth is expected in the third quarter, analysts said.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus