LG Electronics warned its operating profit for Q4 2018 fell sharply as global consumer electronics markets weakened during growing trade concerns between China and the US.
In a preliminary earnings statement, the vendor reported its operating profit would likely drop 80 per cent year-on-year to KRW75.3 billion ($67 million), with consolidated revenue down 6.9 per cent to nearly KRW15.8 trillion.
Analysts said earnings were weighed down by increases in bonuses and marketing expenses for smartphones, Reuters reported.
The company’s operating profit for 2018 is forecast to increase 9.5 per cent from the previous year to KRW2.7 trillion, with annual sales expected to remain flat at about KRW61.3 trillion.
Its final earnings results for 2018, which includes net profit and results by business group, will be announced later this month.
Rival Samsung forecast its operating profit for Q4 would drop 28.7 per cent year-on-year to about KRW10.8 trillion.
Apple also recently cut its guidance following weaker-than-expected iPhone sales, with China having a significant impact.Subscribe to our daily newsletter