LG Electronics second quarter profit likely to miss estimates on mobile unit woes
South Korea's LG Electronics Inc estimated that its second-quarter operating profit rose 14 percent from a year ago, but fell short of expectations as the mobile division's struggles likely continued.
LG, the world's No.2 television maker by sales behind Samsung Electronics Co Ltd, reported a preliminary April-June profit of 664 billion won ($574.49 million), versus a Thomson Reuters StarMine SmartEstimate of 755 billion won from a poll of 18 analysts.
Revenue likely rose 3.9 percent to 14.6 trillion won, the firm said, also lower than the 15.1 trillion won SmartEstimate.
"It's likely that the mobile division's losses were well over 100 billion won, while profitability for both the television and appliances businesses were a bit weaker than what we had anticipated," Dongbu Securities analyst S.R. Kwon said.