LG Electronics Forecasts 33% Rise in Third-Quarter Operating Profit

By Kwanwoo Jun

LG Electronics Inc. expects its third-quarter operating profit rose 33% compared with the same period a year earlier, likely beating market expectations.

The South Korean consumer-electronics giant said Tuesday it expects operating profit of 996.70 billion won ($739.5 million) for the July-September quarter, while revenue is expected to fall 2.2% on year to KRW20.714 trillion.

The operating-profit forecast is above a FactSet-compiled consensus estimate of KRW832.88 billion and the revenue figure is slightly below the FactSet estimate of KRW20.873 trillion.

Analysts have said that the South Korean company was likely to still be struggling with sluggish global demand for home appliances and televisions but it could sustain its profitability with lower operating costs and brisk sales of vehicle parts with its new auto-component factory starting production in Mexico.

LG Electronics is due to release its full quarterly earnings later this month.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

October 10, 2023 02:16 ET (06:16 GMT)

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