LG Electronics estimates 91.2% on-year drop in operating profit in Q4

LG Electronics’ headquarters building in Yeongdeungpo District, western Seoul [YONHAP]

LG Electronics estimated a whopping 91.2 percent on-year drop in operating profit to 65.5 billion won ($51.6 million) in the fourth quarter, according to its earnings guidance released Friday.

The figure far missed the analyst consensus of 420.7 billion won compiled by FnGuide.

The rapid fall was due to slumping demand for electronics and soaring costs.

Its quarterly sales, however, came in at a record 21.86 trillion won, up 5.2 percent on year. The previous record was 21.17 trillion won in the third quarter last year.

The sales figure was also below the market consensus of 22.72 trillion won.

This brought LG Electronics’ annual sales estimate to a record 83.47 trillion won, up 12.9 percent on year.

Neither segmentation nor net profit were provided in the guidance.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]