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After Samsung’s guidance miss, South Korea’s LG warns profits likely fell 80 percent in fourth quarter

After Samsung’s guidance miss, South Korea’s LG warns profits likely fell 80 percent in fourth quarter Featured

South Korea’s LG Electronics said on Tuesday its fourth-quarter operating profit likely fell 80 percent from the same period a year earlier, far below analyst expectations.

The world’s second-biggest television set maker behind compatriot Samsung Electronics estimated profit of 75.3 billion won ($67.03 million) for October-December last year. That would compare with the 387 billion won average of 11 analyst estimates in an I/B/E/S Refinitiv poll.

 

Revenue likely fell 7 percent to 15.8 trillion won, LG said in a regulatory filing, versus analysts’ 16.3 trillion won estimate.

LG did not disclose further details of fourth-quarter operations and will announce full results at the end of January.

Analysts said earnings were likely weighed down by higher year-end bonuses and marketing expenses for new smartphones.

LG held a 3 percent share of the global smartphone market in the second quarter of last year, showed latest data from market tracker Counterpoint Research.

Earlier in the day, Samsung estimated a 29 percent drop in quarterly profit, its first decline in two years, as it flagged tough memory chip and mobile phone markets.

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  • Origin: cnbc/GhAgent