ANN/THE KOREA HERALD – LG Electronics said on Friday it expected its second-quarter earnings to climb more than 60 per cent from a year earlier on robust sales of its main home appliance products and balanced qualitative growth of its business-to-business sector.
LG estimated that its operating profit for the April-June period came in at KRW1.19 trillion (USD863.2 million), up 61.2 per cent from a year ago, according to the company’s earnings guidance.
The home appliance maker’s earnings guidance for the April-June period has far exceeded market expectations. The FnGuide, a local market intelligence firm, projected the company’s second-quarter operating profit to record KRW998.1 billion.
Sales increased 8.5 per cent on-year to KRW21.7 trillion. The sales estimate was slightly higher than the consensus of KRW21.33 trillion by local analysts, provided by the FnGuide.
Meanwhile, the data for net income was not available for Friday’s earnings guidance.
Both sales and operating profit were the highest ever in the second quarter, and operating profit exceeded KRW1 trillion for the first time in the second quarter.
Looking at the performance in the first half of the year, sales exceeded KRW40 trillion for three consecutive years and operating profit exceeded KRW2 trillion for four straight years.
Compared to the first half of the previous year, sales increased by 5.9 per cent and operating profit increased by 13 per cent.
“Efforts to improve the business structure and change business methods to change to a future-oriented structure contributed greatly to good performance,” an LG Electronics official said.
