LG Electronics first-quarter profit likely down 19 percent, beating estimates

5 April 2019, 10: 39
© Reuters. Visitors use their mobile phones next to LG booth during the Mobile World Congress in Barcelona

South Korea's LG Electronics Inc said on Friday its operating profit for the three months ended March likely fell 19 percent from a year earlier, indicating a narrower drop than what analysts were expecting.

The second-biggest television set maker in the world, after Samsung Electronics (LON:0593xq) Co Ltd, estimated an operating profit of 899.6 billion won (£606 million) for the quarter, versus 1.1 trillion won a year earlier.

That compares with an average estimate of 808 billion won from 21 analysts polled by Refinitiv I/B/E/S.

Revenue likely fell 1.4 percent to 14.9 trillion won, LG said, versus a 15.3 trillion won consensus.

LG did not disclose further details of first-quarter operations and will announce full results in late April.

Analysts said LG's longtime loss-generating smartphone business and intensifying price competition in the global TV market likely weighed on earnings.

LG held 3 percent of the global smartphone market in terms of shipment last year, according to a report from market tracker Counterpoint Research.

Earlier on Friday, Samsung said it was heading for its lowest quarterly profit in more than two years as a glut in memory chips, slowing panel sales and rising competition in smartphones hit margins.