LG Electronics – 3Q Preliminary
LG Electronics (066570.KS) released preliminary 3Q results of 18.8t won ($15.7b US) in sales, up 9.8% q/q and up 22% y/y, above the 18.3t consensus, while operating profit is expected to be 540.7b won ($34m), which includes a 480b won provision for issues relating to the Chevy Bolt EV recall. The preliminary results reflect the termination of the company’s mobile business at the end of July as a discontinued operation. On the surface, without the provision, operating income would be ~1.02t won $852.5m US), a bit below consensus of 1.1t won, but we reserve judgement until we see if there were any other provisions that might have affected operating income.
While the company gives no segment detail until the full release later this month, expectations are that the home appliance business drove sales and profits along with strong OLED TV sales while the automotive group is still facing shortages and will likely show a loss, as will the IT device segment, which is comprised of the company’s remaining mobile device business, solar, and robotics. While some remain optimistic about 4Q, the weakness in TV and more recently notebook demand looms over expectations for higher 4Q profitability. More to come after the full release.
While the company gives no segment detail until the full release later this month, expectations are that the home appliance business drove sales and profits along with strong OLED TV sales while the automotive group is still facing shortages and will likely show a loss, as will the IT device segment, which is comprised of the company’s remaining mobile device business, solar, and robotics. While some remain optimistic about 4Q, the weakness in TV and more recently notebook demand looms over expectations for higher 4Q profitability. More to come after the full release.
RSS Feed