LG Electronics, the South Korean consumer-electronics giant, is anticipating a significant increase in its fourth-quarter operating profit compared to the same period last year. However, the company expects a decline from the previous quarter due to sluggish demand recovery for home appliances. According to the preliminary earnings forecast released on Monday, LG Electronics projects an operating profit of 312.50 billion won ($237.8 million) for the October-December quarter, as compared to KRW69.30 billion in the previous year and KRW996.70 billion in the previous quarter.
It is important to note that this estimate falls below the consensus estimate of KRW662.12 billion compiled by FactSet. Nonetheless, LG Electronics foresees a year-on-year revenue growth of 5.9% for the December quarter, reaching KRW23.157 trillion.
Looking at the full year of 2023, LG Electronics expects a slight decline of 0.1% in operating profit, amounting to KRW3.549 trillion, while projecting a 1.0% increase in revenue, totaling KRW84.280 trillion.
Despite facing challenges posed by the delayed recovery of demand from the economic slowdown and intensified market competition, LG Electronics emphasizes its resilient business performance. The company’s full quarterly earnings report is scheduled to be released later this month.
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