LG Electronics forecast sharply lower operating profit and revenue for Q2 due to factory closures and weakened demand for home appliances and TVs stemming from Covid-19 (coronavirus) lockdown measures.

In a preliminary earnings statement, the South Korean vendor estimated operating profit dropped 24.4 per cent year-on-year to KRW493 billion ($412.3 million) and consolidated revenue fell 17.9 per cent to KRW12.8 trillion.

The company did not break out results by division, with detailed earnings due later this month. But The Korea Times reported the Mobile Communications business is expected to have performed better, with analysts tipping the launch of the Velvet 5G smartphone to deliver a revenue boost, with operating loss set to be lowered due to reductions in marketing costs.

During Q1, sales at the mobile unit fell 33 per cent to KRW998.6 billion, though a stronger performance from other divisions resulted in it overturning a net loss in the comparable 2019 period.