LG Electronics Estimates 20.9% Drop in Q3 Operating Profit

Photo : YONHAP News

LG Electronics estimated an over 20-percent drop in operating profit at 751-point-one billion won, or around 557 million U.S. dollars, for the third quarter.

According to the company’s regulatory filing on Tuesday, sales in the July-to-September period tentatively reached 22-point-two trillion won, up ten-point-seven percent from a year earlier.

While the amount of sales posted a record high for the third quarter, the operating profit dropped 20-point-nine percent on-year.

LG attributed the loss to rising costs of distribution and marketing in the second half of the year.

The company took note of its continued growth in sales, crediting efforts to modernize its business portfolio, such as appliance subscriptions, direct-to-consumer(D2C) sales and expansion of the volume zone strategy.

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