​LG expects big Q2 profits despite huge G5 smartphone setback

Thank you washing machines and refrigerators: despite huge losses from its G5 smartphone, LG Electronics forecasts profits of 584.6 billion won for the second quarter from strong home-appliance sales.

lg-g5-preview-first-19.jpg

LG's part-modular G5 smartphone has sold only half of what the firm had initially expected.

Image: LG

LG Electronics expects an operating profit of 584.6 billion won ($500 million) for the second quarter of the year, its best in two years, despite a huge setback from lackluster sales of its flagship G5 smartphone.

The profit is a jump of 139.5 percent from a year ago and 15.7 percent up from the previous quarter's high of 505.2 billion won.

Revenue was 14 trillion won for the quarter, a slight increase of 0.5 percent from a year ago, its earning guidance show.

The firm's home-appliance division is expected to have contributed the lion's share of profits, just as it did in the first quarter.

Meanwhile, its mobile division is expected to have caused around 100 billion won in losses due to disappointing sales of the G5.

LG sold only half of what it had initially expected from the part-modular phone.

Last week, the company commenced a rare restructuring of the mobile division, usually done at the end of the fiscal year, due to the huge G5 setback. Much is now riding on the V20, which is to be released later this year.

Precise contributions of the division will be shown at the end of the month in its official profit report.