LG Electronics expects Q2 earnings to decrease

Mumbai : LG Electronics on Thursday estimated its second-quarter operating profit decreased 12 per cent year-over-year on weaker demand for TV and home appliances amid rising inflation and raw material costs. Its earnings guidance for the April-June period showed the tech company’s operating profit declined 12 percent from a year ago to 791.7 billion won ($610.5 million). The operating profit was 1.2 per cent lower than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Sales increased 15 per cent to 19.47 trillion won. The data for net income was not available. Analysts have suggested less upbeat earnings for LG for the remaining year, as pandemic-driven pent-up demand for TV has lost steam and rate increases in major economies to control inflation weakened consumer-spending power. Also high shipping costs amid supply chain disruptions are hurting the company’s bottom line. The company said Thursday its TV business shrank in the quarter, with marketing costs rising and people spending less time at home as the COVID-19 pandemic is receding.