Technology South Korea’s LG Electronics says fourth quarter profit likely fell 80 percent,...

South Korea’s LG Electronics says fourth quarter profit likely fell 80 percent, missing estimates

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South Korea’s LG Electronics says fourth quarter profit likely fell 80 percent, missing estimates

South Korea’s LG Electronics Inc (066570.KS) said on Tuesday its fourth-quarter operating profit likely fell 80 percent from the same period a year earlier, far below analyst expectations.

The world’s second-biggest television set maker behind compatriot Samsung Electronics Co Ltd (005930.KS) estimated profit of 75.3 billion won (52.5 million pounds) for October-December last year. That would compare with the 387 billion won average of 11 analyst estimates in an I/B/E/S Refinitiv poll.

Revenue likely fell 7 percent to 15.8 trillion won, LG said in a regulatory filing, versus analysts’ 16.3 trillion won estimate.

LG did not disclose further details of fourth-quarter operations and will announce full results at the end of January.

Analysts said earnings were likely weighed down by higher year-end bonuses and marketing expenses for new smartphones.

LG held a 3 percent share of the global smartphone market in the second quarter of last year, showed latest data from market tracker Counterpoint Research.

Earlier in the day, Samsung estimated a 29 percent drop in quarterly profit, its first decline in two years, as it flagged tough memory chip and mobile phone markets.

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