LG Electronics announced its preliminary results for Q3, with operating profit expected to jump 82.2 per cent year-on-year and revenue to increase 15.2 per cent despite continued losses in its mobile business.
In a statement, the company predicted operating profit will hit KRW516.1 billion ($452 million) in Q3 2017, up from KRW283.2 billon in Q3 2016, while consolidated revenue is expected to rise to KRW15.2 trillion from KRW13.2 trillion in the comparable quarter of 2016.
However, analysts predicted the company’s mobile unit will post a KRW200 billion loss for Q3 2017, its tenth quarterly loss in a row, Financial Times reported.
LG’s mobile division reported a poor Q2 performance as it suffered from weak sales of premium models and raw material price increases. Smartphone shipments in Q2 fell 4 per cent year-on-year to 13.3 million units, and it recorded an operating loss of KRW132.4 billion compared with a loss of KRW139.5 billion in Q2 2016. Revenue in Q2 of KRW2.7 trillion was down 21 per cent year-on-year.
The company unveiled its V30 smartphone at IFA2017 in Berlin in late August, which limited its impact on Q3 figures.
On a group level, LG reported a 92 per cent year-on-year increase in its net profit in Q2 to KRW514.9 billion on revenue of KRW14.55 trillion, up 4 per cent year-on-year.