LG expects steady profits for Q2
LG Electronics expects an operating profit of 664 billion won and revenue of 14.55 trillion won for the second quarter of the year, the company has revealed in its Q2 earnings guidance.
Operating profit and revenue for the quarter rose 13.6 percent and 3.9 percent respectively from a year ago. Compared to the previous quarter, the results mark a drop of 27.9 percent and 0.7 percent.
LG hit its second-highest operating profit ever for the first quarter of 2017, backed by strong performances from its home appliance business.
Its mobile business reported an operating loss of 200 million won in that quarter, a slight recovery but its eighth consecutive quarterly loss.
Marketing costs for the G6 will likely have caused a loss of 100 billion won for the second quarter, LG insiders say.
The company went back to the basics with the latest phone, Mobile president Juno Cho said.
The G6 sported this year's first 18:9 ratio, bezel-less screen, which the company said will be the trend for vendors going forward.
Last year, the company appointed Jo Seong-jin, previously head of its home appliance business, as CEO of the company.
Jo has been overseeing the restructuring of the mobile business to streamline supply management locally and overseas to be more cost-effective.