[THE INVESTOR] LG Electronics said on Oct. 5 its third-quarter operating profit moved up 44.4 percent on-year.
Its operating profit came to 745.5 billion won (US$659 million) in the July-September period, compared to 516.1 billion won posted a year earlier, the company said in a regulatory filing.
Sales edged up 1.3 percent over the cited period to reach 15.4 trillion won.
The third-quarter guidance report’s operating profit hovered below the market’s estimate of 771.7 billion won, based on a survey conducted by securities firms. The sales estimates came to 15.8 trillion won.
With its third-quarter operating profit exceeding 700 billion won, however, will likely post an annual profit of 3 trillion won for the first time in 2018.
Despite the on-year increase, the latest operating profit represented a 3.3 percent drop from the previous three-month period. Industry watchers said the on-quarter decrease was apparently attributable to sluggish demand for its smartphones.
The company did not provide detailed performance data for each division. The finalized earnings will be delivered later this month.
Industry watchers claim the TV and home appliances divisions were largely responsible for the on-year increase in profits.
The smartphone business, however, is expected to have posted yet another quarterly shortfall for the July-September period. The division has been posting losses since the second quarter of 2017.
Industry watchers added LG may post better earnings in upcoming quarters, when the mobile division reduces losses by cutting expenditure on marketing projects.
The vehicle components business may also start to generate full-fledged profit next year in cooperation with Austrian automotive lighting system firm ZKW Group, which was recently purchased by LG.
By Song Seung-hyun and newswires (firstname.lastname@example.org)