April 23, 2024

• 

[THE INVESTOR] LG Electronics' operating profits in the third quarter is estimated to fall 3.7 percent on-year possibly due to its sluggish smartphone sales, the company said in its earnings guidance report on Oct. 7.

LG said it expects an operating profit of 283.2 billion won (US$253.40 million) during the July-September period, which compared to 293.9 billion won a year ago. 

The figure missed an earlier market consensus of an estimated 319.4 billion won, according to FN Guide, a local market tracker.

The company said sales were also estimated to decline 5.8 percent to 13.2 trillion won.

The company didn‘t release breakdown profits in individual business divisions, with the final earnings report scheduled to be made later this month. 

Despite strong sales in home appliance and parts units, local analysts predict that the mobile business division is expected to suffer an operating loss worth about 200 billion won to 400 billion won after the dismal failure of the latest flagship smartphone G5, the world’s first modular smartphone accompanied with accessory modules to upgrade camera and audio functions.

The mobile business division, which has continued shrinking its organization, has posted an operating loss in recent years, including 202.2 billion won in the first quarter and 153.5 billion won in the second quarter.

By Lee Ji-yoon (jylee@heraldcorp.com)