LG Electronics was tipped to make its highest Q1 operating profit in its history, although there is little evidence the company’s struggling mobile business will play a role.
In a statement, the consumer electronics company said operating profit is likely to be KRW1.1 trillion ($1 billion), up 20.2 per cent year-on-year, on revenue of KRW15.1 trillion, up 3.2 per cent.
LG reported another loss from its mobile unit in Q4 2017, as it struggled in the face of tough competition from Chinese rivals (among others).
But its group-level performance was much better due to strength in its Home Entertainment business, and Reuters reported analysts believe the Home Appliance business may benefit from “fatter margins” from sales of high-end products.
The mobile unit is expected to post another loss for Q1 2018, although it is likely to be reduced and prove less of a drag on the other businesses.
While some of its rivals unveiled new flagships at Mobile World Congress during February or, in some cases, in the weeks following, LG only announced an incremental upgrade to its admittedly well-received V30 smartphone.
It has been reported the company is looking to cut costs by moving away from its twice-yearly flagship upgrade cycle, which while removing a revenue bump, would also reduce costs associated with development, manufacture and marketing.