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LG,
the world's No. 2 television maker behind Samsung Electronics Co
Ltd, said January-March operating profit was likely 922 billion
won ($812.62 million), compared with an average forecast of 518
billion won from a Thomson Reuters I/B/E/S survey of 24 analysts
and the highest since the second quarter of 2009.
Revenue for the quarter likely rose 9.7 percent to 14.7 trillion
won, the firm said.
"Generally speaking I think the improved product mix in
appliances and televisions and the company's efforts to sell
high-end products lifted profits," HI Investment analyst Song
Eun-jeong said.
Earlier in the day, Samsung estimated the January-March period
will produce its best quarterly profit in more than three years,
beating expectations and putting it on track for record annual
earnings on the back of a memory chip super-cycle.
Though LG did not elaborate on its forecasts, analysts say LG's
mobile business likely turned an operating loss for the
eighth-straight quarter. Sales of its new G6 flagship smartphone
began in March and likely will not provide meaningful
contributions until the second quarter.
Still, some analysts said losses likely were smaller in
January-March as LG's new lower-tier products fared better and
the company reduced marketing spending. "Both the home
appliances and the TV market will enter a seasonally strong
period during the second quarter," Song said, adding the biggest
short-term variable for LG's earnings will be how the G6 fares
in overseas markets such as the United States.
LG shares rose 0.4 percent on Friday, outperforming a 0.1
percent drop for the broader market <.KS11>.
(Reporting by Se Young Lee; Editing by Randy Fabi and
Muralikumar Anantharaman)
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