LG Electronics predicted a double-digit rise in operating profit for the first quarter of 2020, with sales set to decline marginally due to the impact of Covid-19 (coronavirus).
In its preliminary earnings announcement issued today (8 April), the South Korean vendor estimated operating profit will jump 21.1 per cent year-on-year to KRW1.1 trillion ($901.5 million) and consolidated revenue to dip 1.2 per cent to KRW14.7 trillion.
Kwon Sung-ryul, an analyst at DB Financial Investment, told Yonhap News Agency delays in releasing new smartphone models and declines in sales could lead to a KRW200 billion loss for its mobile communications division.
This would be at the same level as in the opening quarter of 2019, when it booked an operating loss of KRW203.5 billion [1].
The news agency noted LG Electronics’ profit growth, driven by its home appliance business, would be the largest since Q1 2018, but warned it could fall sharply in the second quarter after the company feels the full impact of lockdown measures in global markets.
LG Electronics didn’t release net profit figures or break out the results by division. It will announce detailed earnings later this month.
[1] https://www.mobileworldlive.com/featured-content/devices-home-banner/lg-electronics-continues-to-lose-out-in-mobile/
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