LG: Preliminary earnings results for the third quarter of 2016
LG Electronics announced its preliminary earnings for the third quarter suggesting 283.2 billion won in operating profit on 13.221 trillion won in sales last Friday. Sales represent 5.8 percent decrease year-on-year and the operating profit minus 3.7 percent.
Earnings by business division were not announced on the day because the figures are preliminary. Tentative consolidated revenues for the second of 2016 were 14.003 trillion KRW and operating profit is 584.6 billion KRW. Figures for 2016.3Q are the tentative consolidated earnings based on K-IFRS. LG will announce final earnings results including net profit and details regarding each division officially later this month.
The mobile communications division posted a big operating loss in the second quarter, despite selling all of the initial supply of its flagship smartphone LG G5, which launched in March. Whilst it offers customers a number of potentially innovative features, such as a dual camera set up, a replaceable battery and the ability to add in extra hardware modules, the device has failed to interest and excite customers. The mobile division has continued to incur losses for four consecutive quarters, including the first and second quarter 2016.
[Editor's note, Chart below]: LG Electronics IR Team: "...Your comment is correct. 2015.3Q should be stated instead of 2016.3Q..."