LG Electronics warns of fourth quarter profit slump

After posting 367 billion won this time last year in operating income, LG Electronics is expecting to report 75 billion won this year.
Written by Chris Duckett, Contributor
(Image: LG)

LG Electronics has said it is expecting both revenue and operating income to slide for its upcoming fourth quarter results.

In preliminary earnings released on Thursday, the company said it has consolidated revenue of 15.8 trillion won, and operating income of 75.3 billion won. For the same time last year, the company reported revenue of 17 trillion won and operating income of 367 billion won.

For its full year, LG said it had sales of 61.3 trillion won, down slightly on the 61.4 trillion won for 2017, and operating income of 2.7 trillion won, an increase of 9.5 percent.

A breakdown of earnings by division will be released in the coming weeks, LG said. Traditionally, LG profit has been driven by its home appliance and television divisions.

In its third quarter results posted in October, the mobile communications division posted its seventh quarter of operating loss.

The weak guidance from LG follows Samsung and Apple both lowering their revenue outlooks over the past week.

Holy Roly

Earlier this week at CES 2019, LG unveiled a rollable OLED TV.

The 65-inch TV has three modes: Acting as a traditional television; rolled up into its casing and still functioning as a speaker; and partially rolled up such that only a strip remains to show items such as photos and a clock.

CNET reported the TV has been tested to 50,000 rolls and will be available in the second half of the year.

LG also said the TV will have Alexa support, as well as being able to use AirPlay and HomeKit. Earlier this week Korean rival Samsung announced upcoming support for iTunes and AirPlay on its smart TVs.

On Tuesday, LG announced it would extend its relationship with Qt into its vehicle component division. Qt will be used to create its "premium in-vehicle infotainment" systems, as well as along code reuse from other parts of the organisation.

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