LG Reports Record A$1B Profit, G6 Tipped To Struggle
LG who is currently rolling out their new Wall OLED TV along with an all new G6, has reported an 82% rise in operating profits, it’s the highest in nearly eight years.
In Australia LG has been under pressure from TV discounter Hisense in both the TV and appliance markets.
The Company said that said that between January-March operating profit was A1.08 Billion, this is the highest since the second quarter of 2009.
“I think the improved product mix in appliances and televisions and the company’s efforts to sell high-end products lifted profits,” HI Investment Analyst Song Eun-jeong said.
Samsung estimated the January-March period will produce its best quarterly profit in more than three years, beating expectations and putting it on track for record annual earnings on the back of a memory chip super-cycle.
Though LG did not elaborate on its forecasts, analysts say LG’s mobile business likely turned an operating loss for the eighth-straight quarter.
Still, some analysts said losses were likely as LG’s new lower-tier products fared better due to a lack of marketing spend for their flagship model which is currently being sold at Telstra, it will go on sale at JB Hi Fi next month.
“Both the home appliances and the TV market will enter a seasonally strong period during the second quarter,” Song said, adding the biggest short-term variable for LG’s earnings will be how the G6 fares in overseas markets.