By Kwanwoo Jun


LG Electronics Inc. expects its fourth-quarter operating profit to fall 91% compared with the same period a year earlier, amid weaker global demand for televisions and home appliances as well as higher marketing and raw material costs.

The South Korean consumer-electronics giant said Friday that it estimates operating profit will be 65.5 billion won ($51.4 million) for the quarter ending Dec. 31 while revenue is expected to rise 5.2% on year to KRW21.860 trillion.

LG Electronics' preliminary quarterly earnings forecast was well below the FactSet-compiled market consensus estimate for operating profit of KRW449.09 billion.

For the full year, revenue is expected to be KRW83.470 trillion with operating profit at KRW3.547 trillion, the company said.

Seoul-based DB Financial Investment analyst S.R. Kwon said in a recent research note that LG Electronics would have posted an operating loss in the final quarter without an earnings contribution from its Apple-supplier affiliate, LG Innotek Co.

Some analysts expect LG Electronics' profit margin to start improving in 2023 thanks to the fall in shipping costs and lower prices for cold-rolled steel, resin and copper.

The company is due to report its full earnings results later this month.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

01-06-23 0250ET