LG Electronics Q1 profit down 23 percent on sluggish demand

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Sol. LG Electronics said on Friday that its operating profit for the January-March period declined by 23 per cent from a year earlier amid the macroeconomic crisis. Consumer demand has gone down. The South Korean tech company reported its first-quarter operating profit of 1.49 trillion won ($1.1 billion), down 22.9 percent from a year ago.

Sales declined 2.6 percent to 20.41 trillion won. Net income figures are not available.

However, operating profit was 20.7 percent higher than average estimates, according to a survey by Yonhap Infomax, the financial data firm of Yonhap news agency. Although LG’s quarterly profit actually increased from a year ago.

Stabilizing material costs and steady sales of home appliances helped the firm achieve relatively solid earnings results.

Improving TV demand in the European market, LG’s largest OLED TV market, and declining inventory levels, as well as three consecutive quarters of losses, will see LG’s TV business turn around in the first three months of the year Is.

According to market research firm Display Supply Chain Consultants (DSCC), premium TV shipments are forecast to decline 14 percent from the year-ago first quarter, but are expected to pick up in the second quarter.

KB Securities analyst Kim Dong-won expects LG’s TV business to report 439 billion won in operating profit this year, up 81 times from a year ago.

The company will release its final earnings report later this month.(IANS)

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