LG Q4 operating profit up, beats forecast
Seoul, January 27, 2010
South Korea's LG Electronics posted a higher-than-expected quarterly operating profit as strong flat-screen TV sales offset sluggish earnings from mobile phones.
LG, the world's second-biggest TV brand and No.3 mobile phone maker, reported on Wednesday a 446.7 billion won ($385.4 million) operating profit for October-December, higher than a forecast for 355.5 billion won from Thomson Reuters.
The result, which reflects earnings from LG and its overseas units, compares with a 101.4 billion won profit in the year-ago quarter and 850.2 billion won earned in the previous quarter.
LG said late on Tuesday its fourth-quarter net profit was 297.2 billion won, well below a forecast for 412.7 billion won from Thomson Reuters.
Healthy demand for LCD TVs and air conditioners will likely bolster LG's earnings in the first half, but tougher competition in smartphones, where LG has a relatively weak line-up, and a rising won currency could weigh.
Shares in LG, which competes with Samsung Electronics Co Ltd in mobile phones, TVs and appliances, slipped to a near 2-month low on Wednesday, while Samsung has been near all-time highs thanks to a strong outlook for its memory chip business.-Reuters