LG Flag 24% Profit Dip, TV & Appliances Slump
LG Electronics has flagged a better-than-expected 24% slump in Q2 preliminary earnings, with its TV and home appliance division hit by the coronavirus pandemic.
According to the earnings guidance, revenue is expected to slip 17.9% to ~US$10.7 billion (12.8 trillion won), with operating profit notching 493.1 billion for the April to June period.
The results see Q2 operating profit nearly halve versus first quarter results.
The news follows home appliance factory shutdowns during the COVID19 pandemic, and reduced shipments.
Despite the broader slump, results were better than market and internal expectations.
“Domestic sales of premium home appliances recovered in May and June, leading to better-than-expected overall performance,” said a company spokesperson.
Prompt by health conscious consumers, LG’s home appliance and air solutions business is expected to notch double-digit growth in terms of operating income ration in Q2.
The postponement of the 2020 Tokyo Olympics is said to have contributed to a decline in TV divisional sales and profit.
The launch of the LG Velvet smartphone is said to have aided its historically struggling mobile division.