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LG Electronics says second-quarter profit likely up 16.1 percent, misses analyst estimates

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Reuters SEOUL
Last Updated : Jul 06 2018 | 1:26 PM IST

SEOUL (Reuters) - South Korea's LG Eletronics Inc on Friday said operating profit likely rose 16.1 percent in April-June, albeit weighed down by higher marketing expenses for new products in its TV, smartphone and appliance divisions, analysts said.

The world's second-biggest television set maker behind by Samsung Electronics Co Ltd estimated profit at 771 billion won ($691.11 million), versus an 821 billion won average of 10 analyst forecasts compiled by Thomson Reuters.

The estimate comes after LG posted its highest profit in nine years in January-March due to robust sales of high-profit-margin premium TVs. That in turn came after LG ended 2017 with a 33 percent share of the high-end TV market, pulling away from Samsung.

Revenue likely climbed 3.2 percent from the same period a year earlier to 15 trillion won, LG said in a regulatory filing. That compared with analysts' 15.5 trillion won estimate.

LG did not disclose further details of April-June operations and will announce full results at the end of July.

Earlier in the day, Samsung reported a preliminary quarterly profit increase of 5.2 percent to 14.8 trillion won, its slowest growth in over a year as weak smartphone sales blunted the impact of record chip earnings.

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LG shares closed down 2.7 percent on Friday after the earnings guidance, compared with a 0.7 percent rise in the broader market.

($1 = 1,115.6000 won)

(Reporting by Heekyong YangEditing by Christopher Cushing)

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First Published: Jul 06 2018 | 1:15 PM IST

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