|
|
|
LG sees Q3 operating profit to drop nearly by half from a year earlier
|
|
|
|
Top Stories |
|
|
|
|
IANS | 13 Oct, 2021
LG Electronics has estimated its third-quarter operating profit to drop
nearly by half from a year earlier, largely due to a recall provision
cost.
In its earnings guidance, the South Korean tech firm
estimated its July-September operating profit at 540.7 billion won ($451
million), down 49.6 per cent from a year earlier, because of a recall
provision of 480 billion won for General Motors Co.'s electric vehicles.
The
company has supplied GM with battery modules that are made with battery
cells from LG Energy Solution Ltd. In August, the tech firm set aside
234.6 billion won as provision to cover the cost of the recall and cut
its second-quarter operating profit.
Still, LG Electronics
reported strong tentative revenue of 18.78 trillion won (US$15 billion),
up 22 per cent from a year earlier, the highest quarterly revenue in
the company's history.
LG did not break down performances of its
respective business divisions in the guidance. It will announce the
detailed earnings later this month, reports Yonhap news agency.
Analysts
believe LG's main cash cow, the home appliance and air solution units,
has maintained its solid performance in the third quarter, while the
home entertainment division that manages the TV business also stayed
afloat despite concerns of cost increases. It closed its smartphone
business in April.
"Although increasing logistics and retail
costs served as pressure, the company is expected to deliver a solid
earnings report, as there was firm home appliance demand in the US and
upbeat OLED TV sales," said Kim Rok-ho, an analyst at Hana Financial
Investment.
Its vehicle component solutions unit, which LG
considers its future growth engine, was tipped to report an operating
loss for the third quarter as global carmakers still suffer from
production disruptions from chip shortages.
LG's Business
Solutions division, which manages products like IT devices, solar panel
modules and robots, was also predicted to show a mediocre performance.
"Despite
sales growth of gaming monitors, its third-quarter operating profit is
estimated at 33.9 billion won due to semiconductor wafer price hikes and
delayed normalization of B2B business in the information display
sector," said Cha Yu-mi, an analyst at MiraeAsset Securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|