LG's mobile business likely to operate at a loss for the 9th straight quarter
LG is likely to miss analysts' estimates on its second quarter profits due to its struggling mobile business.
While Samsung is expected to report its best quarter in the company's history, LG might report a lower than expected quarterly profits due to its struggling mobile business unit.
According to Reuters, LG reported a preliminary Q2 2017's profit of 664 billion won (US$574.49 million) although 18 analysts estimated a higher figure of 755 billion won. Revenue is said to have increased to 14.6 trillion won, which is also lower than the analysts'estimates of 15.1 trillion won.
"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.
LG's quarterly profits could be dragged by its mobile business, which analysts predicted is heading for a 9th straight quarter of operating loss. Weak sales and higher marketing costs for the G6 flagship smartphone are cited as the main factors for the operating loss.
Source: Reuters
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