Things were expected to be grim due to losses in its mobile business, and rising competition in the television segment pushed its revenue down to below consensus.
LG is the second biggest TV set maker in the world, after Samsung, estimated an operating profit of $792.77 million for the January-March period. That compares with an average estimate of $710 million analysts expected. Revenue is likely to fall by .4 percent
Analysts said LG’s longtime loss generating smartphone business, in the red for seven quarters, and intensifying price competition in the global TV market likely weighed on earnings.
BNK Securities analyst Park Sung-soon said that LG suffered as Samsung slashed prices for its TV products in a bid to get ahead as Chinese television makers.
Analysts also have a dim view of LG’s smartphone business and expect it to continue generating losses.
LG held a three percent share of the global smartphone market in terms of shipment last year, according to a report from market tracker Counterpoint Research.