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(LEAD) LG Electronics estimates 82 pct rise in Q3 operating income

2017/10/10 15:54

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By Kang Yoon-seung

SEOUL, Oct. 10 (Yonhap) -- LG Electronics Inc. said Tuesday its operating profit is estimated to have shot up 82.2 percent on-year in the third quarter, apparently helped by its home appliances and TV businesses.

Operating profit is estimated at 516 billion won (US$453 million) in the July-September period, compared to an operating income of 283 billion won a year earlier, LG Electronics said in a regulatory filing.

Sales are forecast to have advanced 15.2 percent over the cited period to reach 15.2 trillion won, the company said.

The operating profit estimate came slightly below the market consensus of 565.5 billion won compiled by Yonhap Infomax, the financial arm of Yonhap News Agency.

LG did not offer a net profit estimate for the third quarter, as well as breakdowns for each segment. The South Korean tech giant is set to unveil its finalized earnings later this month.

Industry watchers said LG is expected to have enjoyed a robust performance of its home appliances and TV businesses, while its mobile division is presumed to have suffered continued losses, probably marking the 10th consecutive quarter for LG to post operating losses in the sector.

Analysts said the expected slump in LG's mobile business unit is attributable to increased marketing costs following the release of the flagship V30 smartphone.

Eugene Investment Co. said the third-quarter operating profit of LG Electronics' home appliances business is estimated at 408.8 billion won, while that of the home entertainment segment is presumed at 370 billion won.

The mobile communication arm is estimated to have posted an operating loss of 213.5 billion won for the third quarter, it added.

Shares of LG Electronics closed 1.94 percent lower at 80,800 won on Tuesday.