Arab Today, arab today lg reports profits below estimates
Last Updated : GMT 21:13:18
Arab Today, arab today
Arab Today, arab today

LG reports profits below estimates

Arab Today, arab today

Arab Today, arab today LG reports profits below estimates

Seoul - Arabstoday

LG Electronics Inc., the world’s fourth-largest mobile-phone maker, reported profit that missed analysts’ estimates after sales of its handsets lagged behind models from Samsung Electronics Co. and Apple Inc. Net income rose 47 per cent to 159 billion won ($138 million) in the three months ended June 30, Seoul-based LG said in a statement today. The average of 23 analysts’ estimates compiled by Bloomberg was for a profit of 278.8 billion won. Second-quarter sales totaled 12.9 trillion won, also lagging behind estimates. LG, overtaken by Apple as the world’s No. 3 handset maker last year according to researcher Strategy Analytics, widened its loss from mobile-phone sales during the quarter after giving up market share to Samsung, the world’s largest handset seller, and the iPhone maker. LG is fighting back with new smartphones running Google Inc.’s Android software and with TVs featuring the latest 3-D technology. “Sales figures for phones aren’t rising quickly enough,” Choi Nam Kon, a Seoul-based analyst at Tongyang Securities Inc., said by phone before today’s announcement. “That is forcing them to increase spending on marketing and such, so margins keep narrowing. They need to raise sales volume first.” LG fell 0.5 per cent to 57,000 won on the Korea Exchange as of 1:51 p.m., while the benchmark Kospi index fell 0.9 percent. Operating profit more than doubled to 349 billion won, still missing the 364.7 billion won estimate.? Mobile loss? LG’s mobile division had a second-quarter loss of 56.7 billion won, compared with the 53.9 billion-won loss a year earlier. The analysts surveyed by Bloomberg News forecast a loss of 51.5 billion won. Sales fell 28.5 per cent to 2.32 trillion won. The company said it sold 13.1 million handsets, including basic types, in the second quarter. Dongbu Securities Co. estimated mobile-phone shipments to total 13.2 million units. LG probably sold 5.9 million smartphones in the second quarter, compared with 6.2 million units a year earlier, according to Dongbu. LG plans to ship 30 million to 35 million smartphones this year, focusing on models running on faster next-generation networks using the long-term evolution, or LTE, technology. Increased spending on marketing for new models including the Optimus LTE 2 ate into earnings at the unit, Choi wrote in a June 25 report. A shortage of Qualcomm Inc.’s mobile-phone chips may impede plans to raise production and sales of smartphones this year, Park Jong Seok, head of LG’s mobile-phone business, said in May. LG will sideline development of tablet computers to focus on smaller devices, Ken Hong, a spokesman for the company, said in June.? TV business? The home-entertainment division, which makes TVs, had an operating profit of 216.3 billion won, rising from 97.8 billion won a year earlier. The median of four analysts’ estimates compiled by Bloomberg News was 196.6 billion won. Sales fell 5.8 percent to 5.5 trillion won. LG probably sold about 5.8 million liquid-crystal-display TVs in the second quarter, short of an earlier forecast of 6.2 million, according to an estimate by Tong Yang Securities. LG aims to boost LCD TV sales by about 20 percent to 30 million units this year. Currency-related losses also dragged down margins on TVs, Choi wrote in his June 25 report. Global LCD TV sales will probably grow 5 percent this year. That’s slowing from a 7 percent increase in 2011, according to DisplaySearch, part of NPD Group. Shipments of 3-D TVs, an area where LG is making a push, will jump 74 percent this year, DisplaySearch said. LG aims to become the largest seller of 3-D TVs this year by capturing about 25 per cent of the market, with about 80 per cent of new products to be sold in South Korea having 3-D features, the company said in January.? 3-D TVs? LG is using a 3-D technology called Film Patterned Retarder, or FPR, an alternative to the shuttered-glasses approach used by competitors including Samsung. LG says its polarized glasses are lighter and more comfortable to wear, with less eye strain, than those from South Korean competitor Samsung. The company also plans to start selling TVs using the organic light-emitting diode, or OLED, technology, which measures as thin as 4 millimeters (0.16 inches) and produces sharper images than LCD sets. LG also said it had a 41.7 billion-won loss from its 38 percent stake in LG Display Co. The flat-panel maker will disclose second-quarter earnings tomorrow, with 27 analysts forecasting a 32 billion-won loss, according to the average of their estimates compiled by Bloomberg. The company’s home-appliance division had an operating profit of 165.3 billion won, a 2.6 per cent increase from a year earlier, on 2.9 trillion won in sales. That compares with the 143.5 billion-won median of the four analyst estimates. Higher costs for raw materials, coupled with marketing expenses, hurt margins for the quarter, Choi said. The air-conditioner business had a profit of 70.1 billion won, compared with a 43.7 billion-won profit a year earlier. The median of the four analysts’ estimates was for a profit of 79.8 billion won. Cooler-than-usual weather through April damped demand for air conditioners, Choi said. LG aims to raise air-conditioner sales by more than 10 per cent this year, Noh Hwan Yong, head of the business, said in January. From gulfnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lg reports profits below estimates Arab Today, arab today lg reports profits below estimates

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lg reports profits below estimates Arab Today, arab today lg reports profits below estimates

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday