LG Electronics Q2 Operating Earnings Down on Weak Mobile Sales
LG Electronics Inc. said Friday its second-quarter operating profits are expected to have dropped 15.4 percent from a year earlier, mainly due to its sluggish smartphone business.
In an earnings guidance, the South Korean electronics maker said it expects to post 652.2 billion won ($557 million) in operating profits in the April-June period.
Its sales are expected to be 15.6 trillion won in the second quarter, a 4.1 percent surge from a year earlier, the firm said.
The company will provide detailed performances for each division later this month.
The earnings should be attributed to LG's sluggish mobile business.
Although LG's first 5G smartphone, the V50 ThinQ, was well-received in the S. Korean market since its launch in early May, it failed to provide strong momentum to help the mobile division make a turnaround in the second quarter.
The Korean phone maker launched the V50 in the United States in partnership with Sprint and Verizon in the last two months, respectively, but the initial response was lukewarm with lack of 5G infrastructure in the nation.
On the other hand, demand for LG's home appliances might have improved LG's overall sales.