• Home
  • Tv
  • Tv News
  • LG Sees Sharp Drop in Q4 Profit, Analysts Point to Thinning TV Margins

LG Sees Sharp Drop in Q4 Profit, Analysts Point to Thinning TV Margins

LG Sees Sharp Drop in Q4 Profit, Analysts Point to Thinning TV Margins
Advertisement

South Korea's LG Electronics said on Tuesday its fourth-quarter operating profit likely plummeted 80 percent from the same period a year earlier, falling well below analyst expectations.

The world's second-biggest television set maker behind compatriot Samsung Electronics Co  estimated profit of KRW 75.3 billion ($67.03 million) for October-December last year. That would compare with the KRW 387 billion average of 11 analyst estimates in an I/B/E/S Refinitiv poll.

Revenue likely fell 7 percent to KRW 15.8 trillion, LG said in a regulatory filing, versus analysts' KRW 16.3 trillion estimate.

LG did not disclose further details of fourth-quarter operations and will announce full results at the end of January.

Analysts said likely causes included profit margins for its high-end TVs being thinned by increasing competition, while the firm's smartphone business continues to lose money.

"It's a surprise," said analyst Lee Jae-yun at Yuanta Securities. "Home appliance sales were worse in emerging markets and China, while its high-end TV business isn't making profit as much as before."

Analysts also said earnings were likely squeezed by higher year-end bonuses and marketing expenses for new handsets.

LG held a 3 percent share of the global smartphone market in the second quarter of last year, showed latest data from market tracker Counterpoint Research.

Earlier in the day, Samsung estimated a 29 percent drop in quarterly profit, its first decline in two years, as it flagged tough memory chip and mobile phone markets.

© Thomson Reuters 2019

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: LG
Devil May Cry 5 PS4 Demo Release Date Announced
CES 2019: Sony’s Master Series Z9G 8K, A9G, A8G, X950G 4K TVs Launched
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »